Iraq and Pakistan have signed new agreements with Iran for transporting LNG and oil via the Persian Gulf, according to Reuters.
The deals will enhance Tehran's ability to influence energy flows through the Strait of Hormuz and cover LNG and oil supplies from the Persian Gulf.
Regional tensions have significantly reduced energy exports from the Middle East. Iran is a strategic country through which about 20% of global LNG and oil trade passes.
Since most of Iraq's oil exports go through the Strait of Hormuz, a closure would severely impact its economy. Pakistan, heavily dependent on energy imports, faces sharp fuel price increases.
Under a secret agreement between Tehran and Baghdad, two Iraqi oil tankers have already passed through the strait. Iraq's Oil Ministry confirmed talks on expanding transit capacity.
Two LNG tankers from Qatar have set sail for Pakistan as part of a bilateral energy deal with Iran.
