• 3 minutes Nucelar Deal Is Dead? Iran Distances Itself Further From ND, Alarming Russia And France
  • 5 minutes Don Jr. Tweets name Ukraine Whistleblower, Eric Ciaramella. Worked for CIA during Obama Administration, Hold over to Trump National Security Counsel under Gen McCallister, more . . . .
  • 9 minutes Shale pioneer Chesepeak will file bankruptcy soon. FINALLY ! The consolidation begins
  • 12 minutes China's Blueprint For Global Power
  • 8 mins The lies and follies of the "cry wolf" enviros: No more fire in the kitchen: Cities are banning natural gas in homes to save the planet
  • 4 hours China Burns More Coal than the Rest of the World !
  • 47 mins Iran Finds New Oil Field With Over 50 Billion Barrels: Rouhani
  • 4 hours "Climate Migrants"
  • 24 mins CHK Trading @ 90 Cents
  • 6 hours New York State Taxpayers Lose 900 Million to Tesla
  • 3 hours Does Brazil Auction Flop Forbode the Outcome of the Saudi Aramco IPO ?
  • 2 hours China's Renewables Boom Hits the Wall
  • 22 hours Water, Trump, and Israel’s National Security
  • 11 hours Giant Windmills Wildly Unpopular
  • 24 hours The End For Deutsche Bank and the European Union?
Saudi Arabia’s Final Plan For Higher Oil Prices

Saudi Arabia’s Final Plan For Higher Oil Prices

Saudi Arabia appears to have…

Is OPEC Losing Its Influence?

Is OPEC Losing Its Influence?

OPEC revised down global oil…

Iraq Warns: A Strait of Hormuz Disruption Would Be “Major Obstacle” To Economy

Basrah pier

Any disruption in the oil exports flowing through the Strait of Hormuz will be a “major obstacle” for Iraq’s economy, Iraq’s Prime Minister Adel Abdul Mahdi said on Tuesday as tensions continue to flare up in the Middle East, Reuters reported on Tuesday.

Iraq has been studying ways around the vital chokepoint for oil exports for some time, but its options for doing so are limited.

Iraq has the fourth largest oil reserves in OPEC, behind Saudi Arabia and Iran and Venezuela—the latter two which remain under strict US sanctions with their oil exports. Iraq is OPEC’s second largest producer and relies heavily on these oil exports—as do most OPEC nations—and any disruption to its oil revenues would be of grave consequence. Its oil industry provides the country with 89% of its revenue, according to the EIA.

Iran has threatened to close the Strait on numerous occasions in response to US or EU actions.

Most of Iraq’s oil is shipped through southern terminals, Abdul Mahdi said. Iraq’s landlocked positioning in the Gulf means that all of its southern exports must travel through the precarious Strait of Hormuz.

US President Donald Trump has vowed that if Iran did manage to close the Strait of Hormuz, that it “wouldn’t be closed for long.” He later added that the United States wasn’t up for protecting oil tankers in these increasingly dangerous shipping lanes forever, or for free.

“China gets 91% of its Oil from the Straight, Japan 62%, & many other countries likewise. So why are we protecting the shipping lanes for other countries (many years) for zero compensation,” President Trump tweeted at the end of June as tensions started to run high after two oil tankers were attacked in the Gulf of Oman.

By Julianne Geiger for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play