Iraq’s August Oil Exports Generate $4.5 Billion in Preliminary Revenue

PUKMEDIA

Strait of Hormuz.

The Iraqi Ministry of Oil has confirmed that the country’s oil exports reached approximately 70 million barrels in August, attributing the increase in export volumes to discounts offered on Iraqi crude to encourage companies to purchase the oil and assume responsibility for transporting it through the Strait of Hormuz.

Bahjat Ahmed, an expert in energy and oil contracts, said the Iraqi government is offering companies discounts of between $26 and $28 per barrel from official prices in return for taking delivery of the crude directly from Iraqi ports and covering the costs and risks of transporting it through the Strait of Hormuz.

He said that, based on calculations of export volumes and prices, the policy could result in an estimated loss of around $2 billion in public revenues each month, at a time when Iraq remains heavily dependent on oil revenues to finance its national budget and pay public-sector salaries.

Ahmed explained that the price of Iraqi crude varies according to its grade. Light crude is sold at prices close to Brent, while medium and heavy crude are typically sold at a discount of around $10 per barrel compared with Brent.

On September 4, 2026, Ministry of Oil spokesman Salim Al-Rikabi said that Iraq’s oil exports in August amounted to nearly 70 million barrels, generating preliminary revenues of approximately $4.5 billion — the highest figure since the war began.

He said the figures demonstrate the importance of the oil sector and its contribution to supporting the national economy and increasing public revenues. Al-Rikabi also noted that the costs and risks associated with transporting crude through the Strait of Hormuz are an additional factor in determining the prices companies are willing to accept, adding that some vessels passing through the strait may deliberately switch off their tracking systems.

According to official Ministry of Oil figures, Iraq’s oil exports exceed 2.33 million barrels per day. Based on available estimates, the difference between the discounted selling prices and global market rates could amount to more than $60.6 million per day.

In a related development, Iraqi Prime Minister Ali al-Zaidi was quoted as saying that the discounts had resulted in a significant decline in oil revenues. He stressed that Iraq was compelled to adopt the policy because of prevailing conditions in the global oil market and the challenges involved in exporting crude through the Strait of Hormuz.


PUKMEDIA