A route near Oman could help keep Iraqi oil moving through the Strait of Hormuz, Foreign Minister Fuad Hussein said Sunday, citing an informal understanding with Washington.
Hussein did not give navigational details or say what rules Iraqi vessels would face. Washington has not publicly confirmed the understanding, and Hussein's account does not establish formal U.S. authorization for Iraqi ships.
Iran has urged ships to use a different corridor, putting that proposal at odds with the Oman-side option Hussein discussed.
The passage carries economic weight because Iraq relies on crude exports from the south. Much of that oil is shipped from Gulf facilities, and Iraq has no pipeline alternative with capacity comparable to Saudi Arabia's. Iraq ranks second among oil producers in the Organization of the Petroleum Exporting Countries (OPEC).
Hussein put Iraq's losses from wartime conditions and disrupted exports at $60 billion. He did not disclose the proposed route's terms.
