The Iraqi cabinet has approved a plan to increase crude exports through the Kurdistan-Turkey pipeline network, aiming to boost shipments from 220,000 barrels per day to 770,000. This expansion is crucial for Iraq's economy, which is heavily reliant on oil, contributing 53% to its GDP in 2025 according to the World Bank.
Recent data from QuantCube Technology indicates that Iraq's overall exports have plummeted since the onset of the war, with oil exports through Hormuz dropping from 93 million barrels in April before the conflict to just 10 million barrels.
In contrast, the UAE is expediting the construction of the West-East pipeline to Fujairah, which is expected to double the Abu Dhabi National Oil Company's export capacity by 2027. Despite the challenges posed by the war, the UAE still has alternative export routes, unlike Iraq, which faces significant logistical hurdles due to its geographical position.
The ongoing conflict has also led to attacks on existing pipelines, further complicating the situation for both countries. Overall, the development of alternative export routes is essential but requires substantial investment and time, as current oil flows remain significantly below pre-war levels