Iraq News - Local News - Baghdadpost

Iraqi Oil Min. warns against closing Hormuz Strait

Iraqi oil minister Thamer Ghadhban has said the closure of the Strait would have a “big impact on Iraq and other countries that export oil using Hormuz to the world market”.

Ghadhban added in press remarks that the Iraqi ministry of oil has declared a state of emergency in order to be ready for any further escalations between the U.S. and Iran.

In earlier remarks, al-Ghadban said the temporary withdrawal of employees of oil companies has nothing to do with security in southern Iraqi oil fields or any threats.

He also stressed that in case Iraq did not receive the necessary gas and electricity quantities, the emergency plan will be able to compensate for this shortage.

Al-Ghadban affirmed that the ministry keeps on storing strategic gas, oil and energy to be able to face any potential crises or shortages.

“The first step we have taken is that we have increased the production of gas compared to last year in order to increase the storage of gas and oil being used in gas stations.”

“But we are optimistic that wisdom will prevail and that this [closure] will not happen because it is a great harm to the region and the world as a whole,” he added.

An estimated 18 million barrels of oil pass through the Strait of Hormuz to the Asian markets every day.

To stabilize global supply and support prices, Iraq produces less than five million bpd as part of its adherence to an agreement between OPEC and other large exporters including Russia. 

Iran has long used threats to close the strategic waterway to pressure its western opponents.