Iraq Turns to Risky Overland Routes as Oil Exports Collapse

Iraq has been facing a critical oil export crisis since tanker traffic through the Strait of Hormuz largely seized up. About a month ago, Iraq reached a temporary agreement with Iran to allow its ships to sail through the waterway; however, additional war risk premiums for Persian Gulf transits have increased dramatically, rendering transport through the route uneconomical. Unlike Iran, which relies heavily on a shadow fleet of tankers to transport its oil, Iraq lacks a large national fleet, forcing it to rely on third parties. Lack of shipping…