Iraq Seeks European Markets for Oil Amid Strait of Hormuz Concerns
Iraqi Prime Minister Ali Al-Zaidi announced Tuesday that he discussed increasing his country's oil exports to Europe with officials in France and Germany. The move aims to diversify export routes and reduce reliance on the Strait of Hormuz, which Iran has threatened to close amid its conflict with the United States and Israel. Al-Zaidi stated in Berlin that Iraq "wants to expand and diversify our export sources," emphasizing that the country "cannot remain hostage to one corridor as has happened now."
During his trip, Al-Zaidi met with German Chancellor Friedrich Merz in Berlin and French President Emmanuel Macron in Paris. He discussed oil exports to Europe with both leaders. Oil sales constitute approximately 90% of Iraq's revenue, but exports have been impacted since the conflict began on February 28. Prior to the war, Iraq produced about four million barrels per day, exporting an average of 3.4 million, primarily through the Strait of Hormuz, with East Asia, particularly China and India, being the main destinations.
To circumvent disruptions, Baghdad has been exporting crude via tankers through Syria and through a pipeline to the Turkish port of Ceyhan. However, these alternative routes can only accommodate a small fraction of the previous sea-borne exports. Al-Zaidi expressed confidence that Iraq could "double" its oil exports via the Mediterranean Sea to supply European and American markets, aiming to increase production to ten million barrels per day, with nearly half potentially destined for Western countries.
Al-Zaidi also indicated that Iraq and Germany anticipate reaching an understanding on crude oil exports, in exchange for Baghdad purchasing German technology and equipment. Chancellor Merz highlighted economic cooperation as a key focus, noting German companies' involvement in Iraq, particularly in energy solutions, and mentioning an agreement on electricity supply to Iraq. Merz also voiced concern over the Houthi control of the Bab al-Mandeb Strait, calling it a vital route for Saudi oil exports and stating it "exacerbates the energy market situation and also affects Germany."
