Iraqi crude is flowing through the Persian Gulf again. After months of near-total disruption, oil tankers are transiting the Strait of Hormuz at levels not seen since Iran effectively choked off the waterway in late February.
The resumption follows a US-Iran agreement reached around June 17 that extended a precarious ceasefire by 60 days. In the week of June 15-21, 125 shipping transits were recorded through the strait, the highest weekly figure since the conflict began. For context, Iraqi oil exports had collapsed from roughly 93 million barrels per month before the crisis to approximately 10 million barrels in April 2026. That’s a drop of nearly 90%, and it gutted Iraq’s primary revenue source.
What the deal actually changes
Iraqi Oil Minister Basem Al-Abadi confirmed that the country’s oil fields are prepared for a production ramp-up. The State Oil Marketing Organization, known as SOMO, has begun coordinating tanker nominations for upcoming loadings.
The increase is described as gradual, dependent on passage conditions through the strait. A 60-day ceasefire is not a permanent peace deal.
