Description: The war in Iran has compounded over the global economic crisis and continues to cause massive shortages in access to oil and gas especially for import – reliant regions such as Europe and Asia. Europe is currently facing additional EUR 3 billion on its energy imports in the short – term while Asia faces large – scale oil and gas shortages which have already caused ripple effects in industries such as agriculture, transport and manufacturing. Iraqi oil fields and state – owned oil companies focusing on export have recently emerged as a potential alternative for Europe. Oil fields in the Basra, Kirkuk and the Kurdistan region have substantially reduced production due to the volatile security situation, however, Iraq continues to export 50 thousand barrels per day through ports in Syria and Turkey. The ports in Baniyas, Syria and Ceyhan in Turkey represent significant transport routes for the exportation of oil to Europe through the Mediterranean.
Impact: Iraq is hosting both US troops and Iranian proxy militant groups while Syria in its transformative phase under President Ahmed Al Sharaa has been significantly destabilized by sectarian violence in recent months. Iraq’s precarious position in the war and the unreliable land routes in Syria make Iraqi oil a compartmentalized solution to Europe’s energy crisis among other things also due to the continent’s heavy reliance on gas as well. Most of Iraq’s producing oil fields have halved production, while foreign workers and companies have abandoned the country indefinitely due to the unstable wartime conditions. Although a realistic possibility, Iraq’s oil represents only a temporary reprieve to Europe’s surmounting energy crisis and does little to reduce the significant shortages of oil for Asia.