Iran's War Erodes 72% of Iraq's Oil Revenues

SadaNews - Iraq's oil export revenues dropped by 72% in March due to the repercussions of the US-Israeli war on Iran, which effectively closed the vital Strait of Hormuz, leading to a decline in Iraq's oil exports last month to $1.9 billion, according to Ali Nizar Al-Shatri, General Director of the Iraqi Oil Marketing Company "SOMO", in an interview with "Asharq".

Al-Shatri revealed that Iraq continued to export until March 8 from its southern ports, explaining that the total amount exported during March alone "was around 18 million barrels with revenues of $1.9 billion".

Prior to the Iran war, Iraq's exports reached 3.5 million barrels per day, generating financial revenues in February alone of over $6.8 billion, while its total revenues during 2025 were about $81 billion from oil exports exceeding one billion barrels.

Capitalizing on Rising Oil Prices

"The Iraqi Oil Marketing Company will not miss the opportunity of rising prices to capitalize on it," according to Al-Shatri. Iraq aims to maximize its benefit from rising oil prices by relying on pipelines and trucks to transport quantities of crude and export them through the ports of neighboring countries.

Al-Shatri disclosed that the focus is now on marketing surplus petroleum products, pointing out that black oil and naphtha are being exported "to reduce storage levels in refineries and ensure continued operation of the refineries at maximum capacity".

The European Market is "Thirsty" for Kirkuk Oil

The General Director of the Iraqi Oil Marketing Company confirmed that the European market is "thirsty" for Kirkuk oil. To meet this demand, he revealed plans to use trucks from neighboring countries like Syria and Jordan to transport oil to their ports. He noted that the quantities exported previously before the war still generate excellent returns amidst the high prices and price premiums achieved by "SOMO" from its customers in Europe.

In his interview with "Asharq", Al-Shatri invited companies to submit their requests to the buyers from the Oil Marketing Company to increase the number of trucks that can load larger quantities, whether from black oil or crude oil, indicating that if the feasibility of those routes is proven, Iraq "will consider maintaining them even after the war ends".

This path revives old logistical ties between Iraq and Syria, dating back to the Kirkuk-Baniyas pipeline that began operating in the 1950s, transporting oil from the Kirkuk fields in northern Iraq to Baniyas port on the Mediterranean Sea with a design capacity of nearly 300,000 barrels per day, before it stopped in the early 2000s due to wars and sanctions, and subsequently sustained damage during the Syrian conflict.

Pumping Oil through Pipelines

Al-Shatri considers that "pumping oil through pipelines represents the best type of pumping and export to reach the Turkish port of Ceyhan and from there to the European and American markets". He noted that the Iraq-Turkey pipeline "is complete, and an announcement will be made about its opening in the next four days to start pumping Kirkuk crude oil".

He also mentioned the efforts being made to transport quantities of Basra medium crude oil from the south to the north for export via the Iraqi-Turkish pipeline, increasing it to about 250,000 barrels per day.

He hinted that if trucking routes through Syria continue, along with the operation of the Turkish pipeline and the pipeline passing through the Kurdistan region, "Iraq's exports will reach around 400,000 to 430,000 barrels per day, which Iraq hopes to exploit in light of rising oil prices".

This is occurring amid "low" export rates from the Ceyhan pipeline through the Kurdistan region, due to security threats affecting some oil fields in the Kurdistan region, according to him.

Land Transportation of Fuel to Syria

In a related context, Iraq has resorted to land exporting fuel to Syria for the first time in decades, as the "SOMO" company has signed contracts to supply about 650,000 tons of fuel oil per month during the period from April to June, according to a document seen by "Reuters", with shipments to be transported overland through Syrian territory, a route not used for many years.

Iraq previously relied mainly on sea exports through Gulf ports like Khor Al-Zubair to reach international markets, before recent developments pushed it to seek alternative methods.

Iraq aims to diversify its export outlets and reduce its reliance on the Gulf, as it is studying the establishment of a new pipeline connecting its territory to the Syrian port of Baniyas, away from the old Kirkuk-Baniyas line that is no longer operational, alongside plans to increase export capacity through the Turkish port of Ceyhan.

Baghdad is also exploring alternative routes involving Jordan, Syria, and Turkey, with the aim of enhancing the flexibility of the export network in the face of geopolitical disturbances, especially with the recurring risks associated with the Strait of Hormuz.

The General Director of the Iraqi Oil Marketing Company "SOMO" also revealed to Asharq that his company signed a contract today for an initial quantity of 50,000 barrels to load Basra medium crude oil from southern ports to Syria and then to the Mediterranean Sea and customers in Europe.

He also disclosed that "many companies have submitted requests for trucking oil, stressing that if the feasibility of those routes is proven, Iraq will consider maintaining them even after the war ends".

Al-Shatri indicated that reducing oil production affects the available gas volume for power plants.