Iraq is preparing to ramp up oil exports from its southern Persian Gulf ports after a US-Iran deal to reopen the Strait of Hormuz is set to be signed on Friday.
The deal matters because Iraq’s crude exports through the Strait collapsed to just 10 million barrels in April 2026. For context, the monthly pre-conflict average was roughly 93 million barrels. That’s an 89% drop, the kind of supply shock that ripples through every corner of global energy markets.
What the deal looks like
The agreement takes the form of a US-Iran memorandum of understanding, announced around June 14-15. Its core provision is straightforward: reopen the Strait of Hormuz to commercial shipping.
US President Trump has predicted the Strait would be “completely open” following Friday’s signing.
