Brent crude climbed to $91.14 a barrel and West Texas Intermediate reached $85.04, a fourth straight day of gains, as unresolved U.S.-Iran tensions keep the Strait of Hormuz under threat. Iraq's cabinet approved a three-month mechanism to route crude oil exports around the bottleneck, while the U.S. quietly advances a separate energy project inside the country.
Oil prices have risen for a fourth consecutive day, with Brent crude reaching $91.14 per barrel while West Texas Intermediate traded at $85.04, nearing recent highs. The lack of progress in resolving the standoff between the United States and Iran has fed market concerns about disruption to Middle Eastern supply routes. Shipping constraints around the Strait of Hormuz have amplified supply-risk pricing, and US forces have been involved in redirecting commercial vessels through the waterway.
Iraq moves to bypass Hormuz
Iraq's cabinet has approved a new mechanism allowing crude exports through specialised international and local companies across multiple outlets, starting September 1. Contracts issued under the framework will run for three months, giving Baghdad more flexibility in marketing its crude while the Iran war and the Hormuz closure disrupt regional flows.
As OPEC's second-largest producer, Iraq depends heavily on crude exports for state revenue, and most of that crude ships from terminals in the southern Gulf. Baghdad has been building alternative export corridors, including routes through Turkey and Syria, to cut its dependence on Gulf shipping lanes.
A widening U.S. energy footprint
Separately, the U.S.-based Excelerate Energy is developing Iraq's first liquefied natural gas import terminal at the Port of Khor Al Zubair, with operations set to begin in the second quarter of 2027. The company signed an integrated agreement with Iraq's Ministry of Electricity carrying an initial budget of $450 million. The facility has been designed for a guaranteed regasification capacity of 500 million standard cubic feet per day, with Iraq committing to a minimum daily take of 250 million standard cubic feet per day.
Meanwhile, OPEC has revised its oil-demand growth forecast downward, adding another layer of uncertainty to a market already on edge over Hormuz.
Sources: Crypto Briefing, Investinglive, Oilprice.com
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