Iraq’s oil minister says fuel supplies sufficient as Hormuz disruption pushes prices above $100

BAGHDAD — Oil Minister Hayan Abdul Ghani said Monday that fuel supplies and liquefied petroleum gas are sufficient to meet domestic demand, with Iraqi refineries operating at full capacity, as the ministry assessed the impact of the regional war on global oil markets and Iraqi crude prices.

“The ministry is working according to the plan prepared for the current circumstances,” Abdul Ghani said, adding that refineries are supplying gasoline, kerosene, white oil and liquefied gas for domestic consumption and electricity generation.

The meeting also addressed the potential effects of a closure of the Strait of Hormuz on prices and supplies — a critical concern for Iraq, whose southern export terminals on the Persian Gulf feed almost entirely into shipping lanes that pass through the strait. Around one-fifth of global oil supply and a large share of liquefied natural gas shipments usually transit the strait daily.

Since the U.S.-Israeli strikes on Iran began Feb. 28, Tehran has issued warnings to shipping and launched attacks in the region, effectively halting most commercial traffic through the passage and pushing oil prices above $100 per barrel.

The disruption carries severe implications for Iraq, where oil accounts for roughly 90 percent of government revenue. Any sustained interruption to export routes threatens the state budget and public spending, making the strait’s status one of the most closely watched variables of the conflict for Baghdad.