The Iraqi Ministry of Oil has announced the resumption of oil exports from the Kirkuk fields (Iraq) through the Turkish port of Ceyhan at a rate of 250 kb/d, following an agreement reached between the Iraqi federal government and Iraq's northern semi-autonomous region (Kurdistan Regional Government) to restart flows (Iraqi News Agency, 18/03/2026).
The move comes as Iraq has been scrambling to find alternative export routes after Iran closed the Strait of Hormuz, through which as much as 20% of the world's crude oil and LNG is normally shipped. Crude oil sales account for 90% of Iraq's budget revenues, making the disruption particularly damaging for the country's finances.
Prior to the outbreak of war in the Middle East, Iraq mainly exported its oil, roughly 3.5 mb/d, from the southern Basra fields via the Strait of Hormuz. The closure of the strait caused the country's output to plunge significantly. The Iraqi Oil Minister confirmed a few days ago that the Iraqi government is in active discussions with Tehran to allow Iraqi oil tankers safe passage through the Strait of Hormuz, with Iran having already granted passage to some vessels depending on their affiliations.
Iraq was among the first OPEC producers to cut output following the outbreak of war, with production falling sharply to approximately 1.2 mb/d from a previous 4.3 mb/d.