Iraq oil exports hit by $60bn war losses

Iraq said it had lost around $60 billion during the Middle East war after Iran’s blockade of a waterway central to global energy flows disrupted its oil exports. Before the conflict, Iraq produced about 4 million barrels per day and exported roughly 3.5 million bpd, with most shipments moving from the south through the Strait of Hormuz. The disruption forced Iraq to halt most production because of limited storage capacity and rely on smaller export routes through Syria and Türkiye.

Key Points:

• The reported loss of around $60 billion was disclosed by Foreign Minister Fuad Hussein on 16 Oct 2026 during discussions with Italy’s foreign minister in Rome.

• Iraq’s dependence on the Strait of Hormuz left its southern oil flows exposed. The shift to exports by truck through Syria and by pipeline through Türkiye cannot immediately replace the scale of seaborne shipments described in the report.

• The development matters for the global Energy sector because the disruption affects both available crude supply and the logistics needed to move it. Any prolonged interruption keeps shipping access, storage constraints and alternative pipeline capacity in focus. ⚡

For Indian energy stocks, OI Charts data on 16 Oct showed ONGC at ₹222, down 1.2% for the session, while futures open interest rose 2.5%, indicating a short build-up. Its put-call ratio was 0.47, with the largest call open interest at ₹225 and the largest put open interest at ₹220. The stock traded near its 52-week low of ₹218.53 recorded on 8 Oct, after falling 4.5% over 20 sessions.

Reliance closed at ₹1,211, down 0.3%, while futures open interest increased 1.9%, also indicating a short build-up. Its put-call ratio stood at 0.61, with the largest call open interest at ₹1,250 and the largest put open interest at ₹1,160. The stock had gained 3.5% over five sessions but remained down 2.6% over 20 sessions. The 27 Oct expiry, 11 days away, places ₹225 for ONGC and ₹1,210 for Reliance near the respective max-pain levels. These positioning figures show cautious derivatives sentiment, but do not by themselves establish that the Iraq disruption caused the share-price moves.

What to watch next is the duration of the waterway blockade, Iraq’s ability to restore production and whether alternate routes can handle larger export volumes. Changes in Hormuz access would remain material for crude transport, regional supply and energy-market volatility.

Source: Arab News, 16 Oct 2026

Not investment advice. For informational purposes only.