{"id":66174,"date":"2026-08-08T06:08:13","date_gmt":"2026-08-08T10:08:13","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/iraq-scrambles-for-export-alternatives-as-hormuz-closure-slashes-output\/66174\/"},"modified":"2026-08-08T06:08:13","modified_gmt":"2026-08-08T10:08:13","slug":"iraq-scrambles-for-export-alternatives-as-hormuz-closure-slashes-output","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/iraq-scrambles-for-export-alternatives-as-hormuz-closure-slashes-output\/66174\/","title":{"rendered":"Iraq Scrambles for Export Alternatives as Hormuz Closure Slashes Output"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Iraq\u2019s oil exports have plummeted by 75%<\/strong> due to the ongoing closure of the <strong>Strait of Hormuz<\/strong>, with current output dropping to <strong>2.7 million barrels per day (b\/d)<\/strong>.<\/li>\n<li>The Iraqi government is fast-tracking a <strong>$15 billion Basra-Haditha pipeline<\/strong> project to bypass the Gulf, targeting a capacity of <strong>2 million b\/d<\/strong> to reach Mediterranean ports.<\/li>\n<li><strong>Russian forces<\/strong> claimed control of the settlement of <strong>Ivanivka<\/strong> in the Kharkiv region, as a massive wave of 151 drones and ballistic missiles targeted <strong>Kyiv<\/strong>, killing at least 11 people across Ukraine.<\/li>\n<li>Global markets remain on edge with <strong><a href=\"https:\/\/stockmarketwatch.com\/metal\/gold\" data-internallinksmanager029f6b8e52c=\"4\" title=\"gold price today\">Gold<\/a> (<a href=\"\/stock\/GOLD\">GOLD<\/a>)<\/strong> rising <strong>0.51%<\/strong> and <strong>US Oil (<a href=\"\/stock\/USOIL\">USOIL<\/a>)<\/strong> ticking up <strong>0.17%<\/strong> as geopolitical tensions in the Middle East and Eastern Europe escalate.<\/li>\n<\/ul>\n<h2>Iraq\u2019s Energy Crisis and Strategic Pivot<\/h2>\n<p>Iraqi Oil Minister <strong>Hayyan Abdul-Ghani<\/strong> confirmed on Saturday that the country\u2019s oil sector is in a state of emergency, with exports falling to just <strong>1.5M\u20131.7M b\/d<\/strong>. This represents a staggering decline from pre-war levels, which stood at <strong>3.4M b\/d<\/strong> via the <strong>Strait of Hormuz<\/strong>. The Minister noted that oilfields are currently on &quot;standby&quot; to restore full output immediately upon the cessation of hostilities.<\/p>\n<p>To mitigate the impact of the maritime blockade, Baghdad is aggressively pursuing land-based export routes. The proposed <strong>Basra-Haditha pipeline<\/strong>, estimated to cost <strong>$15 billion<\/strong>, will eventually connect southern oil fields to the ports of <strong>Ceyhan<\/strong> in Turkey and <strong>Banyias<\/strong> in Syria. Iraq recently signed a preliminary agreement with a consortium including <strong>Chevron (<a href=\"\/stock\/CVX\">CVX<\/a>)<\/strong> and <strong>Capital TI<\/strong> to conduct feasibility studies for these strategic corridors.<\/p>\n<h2>Escalation in the Russia-Ukraine Conflict<\/h2>\n<p>On the Eastern front, the <strong>Russian Defense Ministry<\/strong> announced that its forces have taken control of <strong>Ivanivka<\/strong> in the Kharkiv region. This tactical gain follows a week of intensified Russian pressure in northeastern Ukraine. Meanwhile, a devastating overnight aerial assault on <strong>Kyiv<\/strong> and surrounding districts utilized <strong>six ballistic missiles<\/strong> and over <strong>150 drones<\/strong>, overwhelming local air defenses.<\/p>\n<p>The attacks resulted in at least <strong>11 fatalities<\/strong> nationwide, including a child in the Brovary district. Ukrainian officials reported that none of the ballistic missiles were intercepted due to a critical shortage of <strong>Patriot<\/strong> missile batteries. In response, President <strong>Volodymyr Zelenskyy<\/strong> has reportedly intensified talks with international partners to secure anti-ballistic production capabilities by the end of 2026.<\/p>\n<h2>Market Reaction and Global Outlook<\/h2>\n<p>Financial markets showed modest volatility over the weekend as traders weighed the risk of a prolonged energy supply disruption. <strong>Bitcoin (<a href=\"\/stock\/BTC\">BTC<\/a>)<\/strong> remained stable near <strong>$64,993<\/strong>, while <strong>Solana (<a href=\"\/stock\/SOL\">SOL<\/a>)<\/strong> and <strong>Avalanche (<a href=\"\/stock\/AVAX\">AVAX<\/a>)<\/strong> saw gains of <strong>1.44%<\/strong> and <strong>1.55%<\/strong> respectively. Investors are closely watching the <strong>U.S. Federal Reserve&#39;s<\/strong> next move as Republicans face a year-end test regarding the <strong>Trump spending bill<\/strong>.<\/p>\n<p>In the Middle East, reports of artillery shelling in southern Lebanon and the targeting of soldiers in Syria&#39;s <strong>Deir ez-Zor<\/strong> continue to fuel fears of a wider regional conflagration. Iraqi officials have reiterated their rejection of attacks on energy infrastructure, promising compensation to international oil companies if their assets are damaged during the conflict.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Iraq\u2019s oil exports have plummeted by 75% due to the ongoing closure of the Strait of Hormuz, with 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