Iraq in talks with Iran over Strait of Hormuz oil transit

BAGHDAD, Iraq — Iraq's Oil Minister Besim Mohammed Khedair said the government is in direct contact with Iran to keep crude exports flowing through the Strait of Hormuz in the Persian Gulf. Speaking to the state news agency, Khedair said an Iraqi delegation is negotiating with Tehran on facilitating the passage of oil tankers and expressed hope that an understanding could be reached in the coming days. The minister warned that any restriction on traffic through the strait would directly hit Iraq's economy, noting that the government is working on a plan to diversify export routes. The plan includes rerouting part of the crude from southern oil fields through the northern pipeline under a one-year extension of the Iraq-Turkey pipeline agreement, lifting daily exports above 700,000 barrels. The arrangement also covers continued oil shipments from the Kurdistan Region, with preparations underway for a longer-term framework deal. Khedair said the government's policy of expanding economic partnerships with neighboring countries is intended to safeguard Iraq's export interests. Iraq, which relies heavily on oil revenue to fund its budget, is widely seen as among the most exposed to any disruption in Hormuz traffic.