ERBIL (Kurdistan 24) – Two Gulf countries are considering Iraq as a possible option to transport their crude oil to the world market amid US-Iran tensions, an Iraqi lawmaker said on Wednesday.
According to Faysal Issawy, an Iraqi parliamentarian from Anbar province, both Kuwait and Qatar have presented Iraq with a proposition “to use Iraq as an alternative path for oil transport” if the Strait of Hormuz is no longer an available pathway to use.
Although unlikely, any escalation of military conflict between the United States and Iran would hinder the safety of the Hormuz and affect the global economy.
The Strait of Hormuz provides the only sea passage from the Persian Gulf to the rest of the world, linking the Middle East crude producers to key markets in the Asia Pacific, Europe, and North America.
Between 17 to 18 million barrels of crude oil passes through the strait daily, including 90 percent of Saudi Arabia’s output, equivalent to about 40 percent of the crude traded globally, according to Rystad Energy.
In a statement on Tuesday, Iraqi Prime Minister Adil Abdul-Mahdi pointed to the possibility of the Kurdistan Region as a secondary passage to export Iraqi oil through the Turkish port of Ceyhan.
Issawy said Kuwait and Qatar are planning to reach “an agreement” with Baghdad to use the Iraqi pipeline as a substitute for their oil to reach the global energy market.
The Hormuz is significant for other Gulf countries as well, and any sign of friction would force them to look for alternative means.
Editing by Karzan Sulaivany