Iraq in talks with Iran to safeguard oil tanker traffic through Hormuz

Iraq's diplomatic overture to Iran regarding safe passage through the Strait of Hormuz represents a critical juncture for global energy markets and European investors with exposure to Middle Eastern oil infrastructure. As one of the world's largest crude producers, Iraq's ability to reliably export oil directly impacts European energy costs and supply security—a matter of considerable concern given the continent's ongoing efforts to diversify away from Russian energy sources. The strategic pivot comes amid escalating security concerns in Iraqi territorial waters, where recent attacks on commercial vessels have disrupted normal shipping operations. These incidents reflect the broader instability characterizing the Persian Gulf region, where multiple non-state actors and regional powers maintain competing interests in controlling maritime trade routes. For Iraq, which depends almost entirely on oil revenues—accounting for approximately 90% of government income—any disruption to export capacity poses an existential fiscal threat. The Strait of Hormuz, through which roughly one-third of global seaborne oil passes, has become increasingly volatile. Iran's strategic position as the choke point's guardian gives Baghdad limited negotiating leverage. By engaging directly with Tehran, Iraq is attempting to carve out a pragmatic corridor for its tankers, bypassing the unpredictable attacks in its own waters while avoiding the