Iran has granted Iraq an exemption from shipping restrictions in the Strait of Hormuz, a move that could have significant implications for global crude oil supplies. "Brother country Iraq is exempt from any restrictions we have imposed in the Strait of Hormuz," stated an Iranian military spokesperson. This measure could allow Iraq to resume some of its maritime exports, potentially reaching up to 3 million barrels per day. Previously, due to the blockade of the strait, Iraqi oil exports fell by 97%. However, an Iraqi official warned that the utility of this exemption will depend on whether shipping companies are willing to risk entering the strait to collect cargo. It is still unclear if the measure will apply to all Iraqi oil or only to the country's vessels, and how it will be enforced. Despite ongoing clashes and intensifying threats from the United States, maritime traffic in this strategic passage has slightly increased, with some Asian countries negotiating safe routes. A French container ship crossed the strait this week—the first from Western Europe to do so—and a Japanese-owned liquefied natural gas vessel also managed to pass through. Nevertheless, the number of crossings remains a minimal fraction compared to pre-war levels, when a fifth of the world's oil and liquefied natural gas transited through this passage. At the start of the conflict, now in its fifth week, Iraq and other key producers in the Persian Gulf were forced to cut their crude production, as the main export route was closed and storage tanks reached maximum capacity.
