Iraq’s dependence on foreign vessels to transport the majority of its crude oil exports is costing the country millions in potential shipping revenue, according to a report by Shafaq News.
The nation’s limited domestic tanker fleet leaves Baghdad unable to secure additional revenue streams from its own logistics operations, forcing it to pay international carriers for services that could theoretically be handled domestically.
1 million barrels. The reliance on external shipping adds a layer of cost and vulnerability to an export model that already accounts for the vast majority of federal income.
This structural weakness in Iraq’s energy logistics comes at a time when the country’s oil revenues are already under pressure.
In the first half of 2026, Iraq’s crude oil export revenues fell to $18.679 billion, driven by the sale of 268.1 million barrels.
The reliance on external shipping adds a layer of cost and vulnerability to an export model that already accounts for the vast majority of federal income.
The financial strain is evident in the budget composition.