Iraq Has Oil Export Alternatives if Strait of Hormuz Closes, Says Oil Minister

AFP

The Strait of Hormuz.

The Iraqi Oil Minister has confirmed that Iraq possesses alternative routes for exporting oil should the Strait of Hormuz be closed due to escalating military tensions in the region.

Hayyan Abdul-Ghani, Deputy Prime Minister for Energy Affairs and Minister of Oil, stated on Saturday, 21 June 2025, that "the departure of foreign staff and experts from any site does not constitute a withdrawal, but rather the rotation of personnel who have been operating on a shift basis for years."

He further clarified that oil export operations remain stable at present. However, "if the Strait of Hormuz were to be closed, the Ministry of Oil has alternative export plans in place."

The minister also noted that the Ministry has completed development operations and increased output in several fields, ensuring that production continues without disruption.

The ongoing exchange of missile attacks between Israel and Iran has heightened concerns that Tehran may seek to close the Strait of Hormuz — the world’s most strategically significant oil shipping route. The commander of the Iranian navy has indicated that such an option is under consideration. Former MI6 Chief Sir Alex Younger told the BBC that the closure of the strait would represent a worst-case scenario, warning: "Closing the strait would undoubtedly pose a significant economic threat, given its potential impact on global oil prices."

The Strait of Hormuz, situated between Oman and Iran, connects the Arabian Gulf to the north with the Gulf of Oman and the Arabian Sea to the south. At its narrowest point, the strait is 33 kilometres wide, with inbound and outbound traffic constrained to shipping lanes just 3 kilometres wide in each direction.

Roughly one-fifth of the world’s total oil supply—around 20 million barrels per day, including crude oil, condensates, and refined products—passes through the strait.

Major OPEC producers such as Saudi Arabia, Iran, the UAE, Kuwait, and Iraq export the majority of their crude oil via this route, particularly to Asian markets. Qatar, the world’s leading exporter of liquefied natural gas (LNG), also relies on the Strait of Hormuz to transport nearly all of its LNG shipments, which account for approximately one-quarter of global LNG consumption.



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