Iraq’s cabinet has approved mechanisms for exporting Iraqi crude through specialised international and local companies and via multiple export outlets, Reuters reports, citing the government.

The contracts under the new mechanism will run for three months starting September 1, according to a statement issued after the cabinet meeting.

Iraq is seeking to diversify its oil export channels and maintain flexibility in marketing its crude amid the Iran war and the closure of the Strait of Hormuz, which has disrupted regional oil flows and created uncertainty around shipping routes.

Iraq has worked to develop alternative export routes in addition to its traditional southern terminals, including routes through Turkiye and Syria, as it seeks to reduce reliance on Gulf shipping routes.

The government did not immediately provide details on the companies to be selected, the volumes to be exported under the mechanism, or the specific export outlets covered by the contracts.