This imports corridor enables Iraqi refineries to continue operating by creating a reciprocal flow of petroleum. Refineries in Basra produce 35,000 barrels of fuel oil for every 70,000 barrels of crude, and because this fuel oil cannot be shipped through the Gulf, it is trucked west to Syria to prevent refinery tanks from overflowing. Some of this exported fuel oil reached the US by ship in July. These measures follow the cessation of historical gasoline imports from Iran, which Iraq previously relied upon for its domestic supply.
Tuesday, October 20, 2026
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Iraq Loses $60B in Oil Revenue as Hormuz Blockade Cuts Gulf Exports by 90%
Commodities22 days ago
Iraq has seen its primary maritime trade routes severed and is now utilizing emergency overland corridors to avoid a complete energy collapse. The country has lost $60B in revenue and been unable to export roughly 90% of its oil via the Gulf since the start of the US-Israel war on Iran. To counter acute fuel shortages, Baghdad is importing gasoline by road from Syria's Baniyas terminal, moving fuel supplied by Qatar's UCC Holding and tankers from Houston, Texas, via truck convoys into the Iraqi border.
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