The Hormuz crisis has placed Iraq’s fuel market under unprecedented strain. There are widespread gasoline shortages, and motorists face long queues at retail stations, while many industrial users have shut down operations after the government ended their subsidized allocations this month (MEES, 25 September).
Federal Iraq’s refining capacity stands at 1.25mn b/d after the addition of more than 350,000 b/d of crude distillation capacity since 2022. High fuel oil yields at aging refineries mean Iraq remains short of gasoline and diesel, although the new capacity has led to a reduction in imports (MEES, 7 November 2025). (CONTINUED - 1543 WORDS)
