SEATTLE (Oil Monster): Shipments of Iraqi crude oil to the United States have declined to their lowest levels in more than two decades, mainly on account of shipping disruptions through the Strait of Hormuz.
Data from the U.S. Energy Information Administration (EIA) indicate a sharp contraction in imports since March. Monthly shipments declined from more than 10 million barrels in January 2026 to just 504,000 barrels in June. Meanwhile, the shipments recovered modestly to 1.486 million barrels in July and 1.387 million barrels in August.
It must be noted that Iraq depends mainly on the Strait of Hormuz for exports. Before the conflict, the country transported more than 3 million barrels per day through the strategic waterway. Its alternative northern pipeline network, connecting to Turkey, has considerably lower capacity.
The disruption has also affected domestic production. Output from southern Iraqi oilfields dropped to approximately 1.3 million barrels per day from 4.3 million barrels before the conflict. Production and exports have since begun recovering, with shipments through Turkey's Mediterranean port of Ceyhan reaching around 500,000 barrels daily.
Despite the recent recovery in Iraqi exports, U.S. imports remain significantly below historical levels. This highlights the impact of geopolitical disruptions on global petroleum supply chains.
