Iraq, Pakistan strike energy deals with Iran as Tehran flexes Hormuz control

Both Iraq and Pakistan have cut deals with Iran to ship oil and liquefied natural gas from the Gulf, according to five sources with knowledge of the matter, in a demonstration of Tehran’s ability to control energy flows through the Strait of Hormuz. 

Why it matters

The U.S.-Israeli war with Iran has slashed energy exports from a region that normally supplies 20% of the world’s crude oil and LNG. With most of its crude exports typically shipped through the strait, Iraq was among the producers worst-affected by its closure, while Pakistan depends heavily on Gulf energy imports and has faced surging fuel costs.