Iran relaxes grip on Hormuz for Iraq as war enters fifth week: Here’s who are allowed pass through key strait

The Iranian military said Iraq, a major oil producer, will be exempt from shipping restrictions in the Strait of Hormuz — a significant movefor global crude supplies.

Iran’s military spokesman said, as reported by state-run Islamic Republic News Agency, “Brotherly Iraq is exempt from any restrictions we have imposed on the Strait of Hormuz.”

The declaration could release up to 3 million barrels a day of Iraqi oil into the market. However, Iraqi official warned the impact depends on whether shipping companies are willing to risk entering the strait to collect cargoes. It is still unclear if the exemption covers all Iraqi oil or only its tankers.

Early in the five-week war, Iraq and other Gulf producers cut output as export routes shut and storage filled up. A Fortune report pointed out Iraqi oil exports plunged by roughly 97% to a daily average of 99,000 barrels in March from the prior month as production shrank and overseas shipments were restricted to a pipeline system that transverses Turkey to the Mediterranean port of Ceyhan.

Even as the conflict continues, ship traffic through the key waterway has definitely edged higher.

Iran has tightened its grip over Hormuz since the US and Israel attacked the country on Feb. 28, reducing shipping to a trickle through a chokepoint that normally handles about a fifth of the world’s oil and liquefied natural gas. Tehran has allowed some ships from friendly nations to transit a pre-approved route while threatening to strike vessels allied to the US or Israel. Pakistan, for example, reached a deal for 20 ships to cross under its flag, and other Asian nations have also secured safe passage.

European states, including France, are making initial diplomatic efforts to ease the crisis, but so far no progress has been reported.