Strait Of Hormuz Oil Route Gets US Clearance, Iraq Seeks Export Relief After $60 Billion War Losses

Mumbai: Iraq has reached an understanding with the United States to export crude oil through a designated maritime route near Oman in the Strait of Hormuz, offering potential relief to its energy sector following disruptions caused by the Iran war.

Iraqi Foreign Minister Fuad Hussein disclosed the development in an interview with Al Jazeera, saying earlier discussions with Washington and Tehran had facilitated oil shipments through the strategic waterway.

Export Agreement

Hussein said the understanding would allow Iraq to transport crude through a specific shipping corridor near Oman.

However, restrictions in the Strait of Hormuz have severely affected Iraqi oil exports, causing substantial financial losses.

According to Hussein, Iraq has suffered approximately $60 billion in losses because of the conflict and disruptions to petroleum shipments.

Despite these challenges, exports recovered in October, reaching approximately 3.5 million barrels per day, compared with 2.65 million barrels daily in September.

US Border Demands

Meanwhile, Washington has reportedly asked Baghdad to close almost all commercial border crossings with Iran.

Hussein said the US Treasury Department wants only two crossings to remain operational for trade and passenger movement, including one in Iraq's Kurdistan region.

The demand forms part of Washington's broader efforts to restrict Iran's economic activities.

Iran Issues Warning

Iranian Foreign Minister Seyed Abbas Araghchi warned Washington to accept Tehran's proposal for ending the conflict or face serious military retaliation.

Writing on X, Araghchi said American voters had delivered their verdict and the White House must now decide its next course.

He maintained that Iran's two-day proposal remained available, offering negotiations if Washington agreed to end hostilities across all fronts.

Diplomatic Talks Stall

Araghchi also claimed diplomatic efforts to halt the conflict had temporarily stalled following the US midterm election results.

He suggested negotiations could resume once regional conditions stabilised and international mediators restarted their diplomatic visits.

The developments highlight continuing uncertainty surrounding Middle Eastern oil supplies and regional security.

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