Iraq’s Cabinet has approved a three-month framework aimed at diversifying the country’s crude oil export routes, according to a statement posted on the Iraqi Prime Minister’s official social media account. The decision, made during the 15th regular session of the Council of Ministers chaired by Prime Minister Ali Falih Al-Zaidi, is set to take effect from September 1 and will involve specialized local and international companies managing exports across multiple outlets.

This move comes as Iraq works to reduce its dependence on the Gulf shipping lanes, primarily those passing through the Strait of Hormuz, which have been subject to disruptions since the escalation of tensions between Iran and the United States. Historically, the majority of Iraq’s crude oil exports have been shipped through terminals located in the southern Gulf, a reliance that leaves the country vulnerable to disturbances in maritime traffic.

The Cabinet's statement emphasized that the approved export mechanisms will run for a three-month period, focusing on expanding and securing alternative routes for Iraq’s crude oil. In a related development earlier this month, Iraq and Turkey signed an agreement to increase oil exports via the pipeline to Turkey’s Mediterranean port of Ceyhan, further highlighting Baghdad’s efforts to diversify its export infrastructure.

Additionally, the Cabinet authorized the oil minister to establish and renew contracts for additional transport routes, as well as approve imports of oil products when necessary to ensure supply stability and prevent shortages. Iraq’s Oil Pipeline Company was also instructed to expand existing loading platforms. Infrastructure projects received approval, including the rehabilitation of the ITA station and the establishment of a new unloading station for ITI, which will have a capacity of 300,000 barrels per day.

Since the beginning of August, Iraq’s oil exports have reached their highest levels since disruptions through the Strait of Hormuz began, the Ministry of Oil reported last week. Oil Minister Bassem Mohammed Khudair stated that the country’s daily average exports have been around 2 million barrels per day, totaling approximately 26 million barrels during the first half of the month.

Iraq remains OPEC’s second-largest oil producer and depends heavily on crude exports for its government revenue. In pursuit of increasing production capacity, Baghdad signed a deal in July with US oil services company Halliburton to manage two southern oil fields, part of the country’s broader strategy to boost output amid shifting regional dynamics.