New Delhi, April 5 -- The Iranian military said Iraq, a major oil producer, will be exempt from shipping restrictions in the Strait of Hormuz - a significant movefor global crude supplies.

Iran's military spokesman said, as reported by state-run Islamic Republic News Agency, "Brotherly Iraq is exempt from any restrictions we have imposed on the Strait of Hormuz."

The declaration could release up to 3 million barrels a day of Iraqi oil into the market. However, Iraqi official warned the impact depends on whether shipping companies are willing to risk entering the strait to collect cargoes. It is still unclear if the exemption covers all Iraqi oil or only its tankers.

Early in the five-week war, Iraq and other Gulf producers cut output a...