Iraq Says U.S. Understanding Could Clear Oil Tankers Through Hormuz

Iraqi Foreign Minister Fuad Hussein said an informal understanding with the United States could let crude tankers transit the Strait of Hormuz near Oman, a potential lifeline for the country's exports.

Hussein described the arrangement in an interview Sunday but did not identify the lane or disclose its terms, including any transit conditions. The U.S. government has not publicly confirmed the understanding, so his statement does not establish formal authorization for Iraqi vessels.

The route is contested. Iran has pressed for ships to use a different corridor, leaving the proposed passage disputed. Iraq, OPEC's second-largest oil producer, relies heavily on the strait because most southern crude exports leave through Gulf terminals; the country has no bypass pipeline comparable to Saudi Arabia's.

Iraq's crude exports averaged about 3.5 million barrels per day in October, up from 2.65 million in September and near the prewar range of 3.3 million to 3.5 million barrels per day. Hussein said the war and export disruptions had cost Iraq $60 billion.