The current export strategy relies on a diversified network, utilizing the Strait of Hormuz, the Iraq-Turkey pipeline to Ceyhan, and recent additions of tanker truck routes through Syria. To mitigate war-risk premiums for international buyers, the state-owned Iraqi Oil Tankers Company successfully moved 2 million barrels past the Strait of Hormuz using a very large crude carrier. This shift marks a significant departure from the traditional free-on-board model, where buyers historically assumed transit risks at Basra terminals. Plans are now underway for the state marketer to acquire its own fleet of tankers.

This rebound follows a period of severe economic contraction, characterized by a 70% drop in southern output during the early months of the war. Foreign Minister Fuad Hussein recently estimated total national losses at $60 billion, a figure reflected in the $20 billion depletion of foreign currency reserves and the recent devaluation of the dinar. With oil accounting for 90% of government revenue, Baghdad is prioritizing infrastructure expansion to push capacity toward 5 million barrels per day. These efforts include the development of new pipelines to Fishkhabour and the Syrian port of Baniyas alongside additional export terminals.