After the opening of the Strait of Hormuz, will Iraq capitalize on rising oil prices to revive its budget?
Economic researcher Diaa Abdul Karim affirmed that Iraq has a significant opportunity to bolster state revenues and support the general budget in the coming period, given the current fluctuations in oil markets.
Abdul Karim told the Information Agency that “Iraq’s exemption and the opening of transit routes for its exports through the Strait of Hormuz represent a major opportunity to increase oil sales, especially with many Asian countries turning to purchase Iraqi oil.”
He added that “the price of a barrel of oil used in the previous budget was around $70, while current prices have exceeded $100 per barrel, which means generating additional revenues that can contribute to supporting the state treasury.”
He explained that “Asian countries are among the largest importers of Iraqi oil and will benefit from facilitating the movement of their tankers through the Strait of Hormuz to reach Iraqi ports, particularly in Basra, which enhances the chances of increasing oil exports.”
He pointed out that “these factors represent a real opportunity for the government to maximize revenues and prepare to face the repercussions of regional and international conditions in the coming period.”
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