Analysts: Reopening of Strait of Hormuz set to ease Iraq's oil exports

KUWAIT CITY, Kuwait — International energy analysts said the reopening of the Strait of Hormuz represents an important step toward restoring oil flows from the Middle East, including Iraq's exports. According to a report by S&P Global, combined daily crude output from Iraq, Saudi Arabia, the United Arab Emirates, Kuwait and Iran fell to 13.406 million barrels in May, down from 23.475 million barrels in February, underscoring the scale of the regional supply loss. Analysts noted that the Strait of Hormuz is a critical transit point for Gulf oil exports and that Iraq would benefit from the renewed stability. They cautioned, however, that a full recovery depends on shipments returning to normal and on clearing the logistical bottlenecks that have built up in recent months. Energy specialists said it would take several months for supply chains and infrastructure to resume operations before flows return to previous levels. The OPEC+ alliance is expected to address August production quotas at its meeting on July 5, as part of efforts to gradually raise supply following the steep regional decline. Senior executives at major Gulf oil companies estimated that the market recovery would continue gradually through 2026, with a full rebound potentially extending into 2027.