Iraq says it lost $60b from Iran war, reaches understandings with US on Hormuz oil route

Iraqi oil will move through the Strait of Hormuz via a shipping lane near Oman, Foreign Minister Fuad Hussein said, under understandings reached with Washington.

Iraq has reached an understanding with the United States to allow Iraqi oil exports through the Strait of Hormuz via a shipping lane near Oman, Foreign Minister Fuad Hussein said in an interview with Al Jazeera.

He said Iraq's losses from the Iran war and disruptions to oil exports had reached $60 billion.

Iraq's oil exports recovered in October after a sharp drop the previous month. Exports rose to about 3.5 million barrels per day from 2.65 million bpd in September, according to Iraqi energy officials.

US asks Iraq to close Iran border crossings

Hussein also said the US Treasury had asked Iraq to close all but two of its border crossings with Iran, as part of Washington’s campaign to increase economic pressure on Tehran.

One of the two crossings that would remain open is in the Kurdistan Region.

Iraq has already closed some crossings with Iran in recent weeks, including the Al-Sheeb crossing in the south, citing the need for security and infrastructure upgrades. Tehran criticized that decision, saying Baghdad had not given advance notice.

Attacks in the Strait of Hormuz

Iran’s Revolutionary Guards said on Wednesday that four oil tankers were destroyed after striking naval mines while trying to traverse a route described as prohibited south of the key waterway, and that two other vessels had been seized.

A day later, the IRGC said two oil tankers and a tugboat had caught fire in separate incidents after attempting to use unauthorized routes through the Strait of Hormuz.

On Sunday, Iran’s navy said an oil tanker caught fire after striking a naval mine east of the Strait of Hormuz.