US Israel Iran War Latest Update: As the US–Israel–Iran conflict enters its fifth week, Iran has slightly relaxed its strict control over the Strait of Hormuz by allowing Iraq to bypass certain shipping restrictions. This move is important for global oil markets, as Iraq is a major crude oil producer.
An Iranian military spokesperson confirmed the decision, stating, “Brotherly Iraq is exempt from any restrictions we have imposed on the Strait of Hormuz.”
Strait of Hormuz Update: Impact on Global Oil Supply
The exemption could help release up to 3 million barrels of Iraqi oil per day into the international market. However, uncertainty remains. Iraqi officials have warned that the real impact will depend on whether shipping companies are willing to take the risk of operating in the high-tension zone.
It is also not yet clear whether the exemption applies to all Iraqi oil exports or only to specific tankers.
Iraq Oil Exports Drop Sharply During US Israel Iran War
Earlier in the conflict, Iraq and other Gulf countries reduced oil output due to blocked export routes and limited storage capacity. Reports show that Iraq’s exports fell by nearly 97%, dropping to about 99,000 barrels per day in March.
During this time, Iraq mainly depended on a pipeline route through Turkey to export oil via the Mediterranean port of Ceyhan.
US Israel Iran War: Ship Traffic Through Strait of Hormuz Begins to Recover
Despite continued tensions, there has been a slight increase in ship movement through the Strait of Hormuz. In recent weeks, several vessels have successfully crossed the route and reached India.
These include ships like Pine Gas, Jag Vasant, Shivalik, and Nanda Devi carrying LPG, along with Jag Laadki transporting crude oil.
US Israel Iran War: Countries Allowed Transit Through Strait of Hormuz
India is among the countries that have managed to secure passage through the strait. It is part of a group that includes China, Russia, Iraq, and Pakistan.
The Consulate General of Iran in Mumbai had earlier stated, “Iran FM Abbas Araghchi: We permitted passage through the Strait of Hormuz for friendly nations including China, Russia, India, Iraq, and Pakistan.”
In a notable development, a French vessel crossed the strait this week, marking the first such movement by a Western European ship during the ongoing crisis. A Japanese-owned LNG tanker has also passed through successfully.
Iran’s Selective Shipping Policy in Hormuz Explained
Since the US and Israel launched attacks on Iran on February 28, Tehran has tightened its grip on the Strait of Hormuz—a key global chokepoint that normally handles around 20% of the world’s oil and LNG supply.
Iran is currently allowing limited passage only to “friendly nations” through pre-approved routes, while warning that ships linked to the US or Israel could face action.
Countries like Pakistan have negotiated safe passage deals, with around 20 ships allowed to cross under its flag. Other Asian nations are also in talks to secure similar arrangements.
Diplomatic Efforts to Ease Strait of Hormuz Crisis
European countries, including France, have begun diplomatic discussions to reduce tensions and stabilise shipping routes. However, no major progress has been reported so far.
Strait of Hormuz Crisis 2026: What It Means for Global Markets
Although Iran’s decision to ease restrictions for Iraq may bring some relief to oil supply concerns, the situation remains uncertain. Ongoing conflict, selective access, and security risks continue to impact global trade and energy markets.
