Oil prices fall as Iraq resumes exports via Türkiye’s Ceyhan port

Global oil prices declined on Wednesday after Iraq and Kurdish authorities reached an agreement to resume crude exports through Türkiye’s Ceyhan port, easing immediate concerns over supply disruptions in the Middle East, according to Reuters.

Brent crude futures fell by $2.26, or 2.19%, to $101.16 per barrel, while US West Texas Intermediate (WTI) crude dropped by $2.99, or 3.11%, to $93.22 per barrel. The decline followed a gain of more than 3% recorded on Tuesday, March 17.

The price movement reflects a partial market response to the anticipated return of Iraqi oil flows. Iraq’s Oil Minister, Hayan Abdel-Ghani, said shipments from the Ceyhan terminal are expected to resume on Wednesday morning, according to state media. Industry sources had earlier indicated that Iraq intends to export at least 100,000 barrels per day through the route.

Market participants viewed the development as a modest relief amid broader supply concerns. “This news has somewhat calmed the market. In the current situation, any additional volume returning to the market has value, so prices declined to reflect that. But oil is still at $100 per barrel, and the crisis around the Strait of Hormuz does not appear to be over yet,” said Anh Pham, a senior analyst at LSEG.

Despite the agreement, underlying geopolitical risks remain elevated. The ongoing conflict involving Iran has shown no signs of de-escalation and has effectively curtailed oil exports from the region. As a result, Brent crude futures have remained above $100 per barrel for four consecutive trading sessions.

Supply constraints are further compounded by disruptions within Iraq itself. Oil production at the country’s key southern fields—responsible for the bulk of its output and exports—has dropped by 70%, falling to approximately 1.3 million barrels per day, according to sources cited on March 8.

At the same time, the conflict has severely affected maritime transit through the Strait of Hormuz, a critical chokepoint through which roughly 20% of global oil supply typically flows. The disruption has effectively blocked this vital route, intensifying concerns over global energy security.

By Tamilla Hasanova