Global oil prices edged lower on Wednesday after Iraq resumed crude exports through Turkey’s Mediterranean port of Ceyhan Port, offering some relief to markets rattled by supply disruptions linked to the Middle East conflict.
Brent crude futures fell slightly to around $103 per barrel, while U.S. West Texas Intermediate (WTI) dropped to about $94, following recent gains driven by geopolitical tensions.
The restart of oil flows comes after an agreement between Baghdad and the Kurdistan Regional Government to resume pipeline exports.
Officials said Iraq aims to pump at least 100,000 barrels per day through the route, although production remains significantly below pre-crisis levels.
Analysts cautioned that the impact on global supply would be limited, as Iraq’s output has been severely affected by ongoing instability in the region.
Despite the resumption, tanker traffic through the Strait of Hormuz remains heavily restricted due to the ongoing conflict involving Iran, the United States, and Israel.
The strategic waterway typically handles about one-fifth of global oil supply, and its disruption has kept prices elevated above $100 per barrel in recent days.
The war, now in its third week, has significantly impacted oil production and transportation across the region. Iraq’s southern oilfields responsible for the bulk of its exports have seen output plunge sharply.
Recent developments, including the killing of Iranian security chief Ali Larijani and U.S. strikes on Iranian coastal missile sites, have added to market volatility, though some analysts say they could signal a possible shift in the conflict’s trajectory.
Meanwhile, oil prices were also pressured by rising crude inventories in the United States. Industry data showed a sharp increase in stockpiles last week, suggesting weaker demand or increased supply.
Elsewhere, disruptions were reported in Libya, where flows from the Sharara oilfield were redirected following a fire, further highlighting the fragile state of global energy supply.
While Iraq’s export resumption offers a degree of stability, analysts say the broader outlook remains uncertain, with oil markets continuing to react to geopolitical developments and supply risks across the Middle East.
