Hormuz Strait reopening expected to ease rice shipments to Iraq

S&P Global reported Sunday that the reopening of the Strait of Hormuz could improve rice shipments to Iraq, supporting supply stability and reviving imports in the coming weeks. According to the agency, the first effects of the waterway's reopening will be felt in the shipping and logistics sector, with rice cargoes expected to reach Iraq more easily after recent delivery difficulties. Iraq is one of the key markets closely watched by rice exporters in Thailand and Pakistan, S&P Global said, adding that an improvement in shipping conditions could trigger new tenders and purchases. However, exporters estimated that rice prices are likely to remain largely stable in the short term, citing limited supply and delayed arrival of the new crop. Market participants said the clearest indicator in the coming weeks will be how far the improvement in shipments translates into higher purchases by Iraq and other Middle East countries, and whether it lifts actual regional rice demand.