Iran permits Iraqi oil tankers to transit Strait of Hormuz

Iran approved the transit of several Iraqi oil tankers through the Strait of Hormuz on Saturday after Baghdad repeatedly requested permission. The state news agency IRNA said the vessels were cleared to pass on the evening of 11 August. Baghdad has been pressing Tehran to lift its restrictions, which have tightened in recent months amid rising tensions with the United States.

The Strait of Hormuz is a choke point for about 20 % of the world’s crude oil and a key route for Iraq’s export earnings. In 2023, Iraq exported roughly 1.5 million barrels a day, most of it through the Hormuz corridor. Iran’s blockade of the waterway in late 2023 and early 2024 had forced the country to reroute tankers to the Persian Gulf, adding costs and delays. The decision to allow passage comes as Iraq’s economy struggles to meet debt repayments and as Tehran seeks to maintain influence over its northern neighbor.

The move follows a flurry of diplomatic back‑and‑forth between Washington and Tehran. Earlier this week, the U.S. State Department warned that new sanctions would be announced on Monday, while Iranian officials issued a statement calling the U.S. “aggressive” and “unreasonable.” Baghdad welcomed the decision, saying it would ease pressure on its shipping industry. Oil traders in the region have already adjusted pricing assumptions, noting that the easing of transit restrictions could lift some volatility in the Gulf markets.

If the U.S. follows through with the planned sanctions, it could counterbalance Iran’s easing stance and shift the balance of power in the Gulf. The next few days will see whether the U.S. imposes new restrictions on Iranian oil exports, or whether Tehran will continue to allow Iraqi vessels while tightening limits on other ships. The outcome will influence global oil supply dynamics and could affect prices in the coming weeks.