Economist: Iraq’s Oil Exports Will Be Affected By The Escalation Between Iran And US, And The Govt Should Look For Other Safe Corridors

BAGHDAD, The economic expert, Malath al-Amin said Iraq's oil exports will be affected if the region sees a political escalation, stressing that the government should look for other safe corridors to extend the pipelines through them to diversify its export competitiveness to enable it to reach the global market.

He said in a statement to NINA that "The expectations after the media messages between Iran and the United States indicate that it is difficult to use the Arabian Gulf as a corridor for oil tankers to avoid military actions that could make the Gulf a theater of battles." Stressed "In this case, the exports of Iraq, Kuwait and Bahrain will be affected, and the oil market could lose more than a quarter of oil revenues."

He pointed out that "experts in the oil market expect rise in the oil prices because of the lack of supply, therefore Iraq should look for other corridors than the Gulf and the Ceyhan pipeline, which absorbs 600 thousand barrels per day only, indicating that one of the options for Iraq in this case is to export oil via Tankers to the port of Aqaba in Jordan with the acceleration of completion of the pipeline from Basra oil fields to Aqaba. "

He added: "Iraq should take advantage of its good relationship with Saudi Arabia to enable it to use the Basra pipeline to the Red Sea."

The economic expert stressed that "the government should look for other safe corridors to extend the pipelines through them to diversify its export competitiveness in order to access the global market."

Iran has threatened to close the strategic Strait of Hormuz if the United States tries to stifle Tehran's economy by halting its oil exports.

The White House said in a statement that US President Donald Trump has decided not to extend exemptions that allow some Iranian oil importers to continue to buy without facing US sanctions when it expires early next month.

Source: National Iraqi News Agency