Iraq opens oil exports beyond Hormuz

By Sohail Khan 28 August 2026, 9:07 am

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Business News›Industry›Energy›Oil & Gas›Iraq opens oil exports beyond Hormuz after months of war, eyes ship-to-ship route off Oman

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Iraq opens oil exports beyond Hormuz after months of war, eyes ship-to-ship route off Oman
Synopsis

Iraq now allows crude oil collection outside the Persian Gulf for buyers. This move comes as exports continue through the Strait of Hormuz despite disruptions. Iraq's state oil marketer is offering specific crude grades via ship-to-ship transfer. This shift follows previous steep discounts offered to entice buyers. The country aims for higher economic benefits through secure transport routes.

FILE PHOTO: The Zubair Oil Field in Basra, Iraq — Iraq opens oil exports beyond Hormuz after months of war, eyes ship-to-ship route off Oman

Iraq has offered buyers of its crude oil the option to collect supplies from outside the Persian Gulf for the first time since the Iran war began, according to a Bloomberg report, underlining that exports continue to flow through the Strait of Hormuz despite months of conflict-driven disruption.

Iraq's state oil marketer, SOMO, is offering Basrah Medium and Basrah Heavy crude that can be picked up via ship-to-ship transfer near the Omani coast next month, through a tender, Bloomberg reported, citing a document it had seen.

Also read: BPCL explores buying Gulf oil on FOB basis, lifts Iraqi oil

According to Reuters, the tender closes on August 28 and marks SOMO's second crude tender in a week, following an August 25 offer that had required buyers to send tankers through Hormuz to load directly at Iraq's Basra terminal.

The shift is notable because Iraq had, until now, been offering steep discounts to entice traders and refiners to load oil deep within the Gulf after the war began. Reuters had earlier reported that SOMO offered discounts of $25-$27 a barrel for Basrah Medium and $27.80-$29.80 a barrel for Basrah Heavy crude to encourage buyers to keep lifting cargoes from inside the Strait.

Iraq's Oil Ministry spokesman Salim Al-Rikabi told Bloomberg that the country has "an agreement with companies to transport Iraqi crude oil through secure routes for sale outside the strait, with the aim of achieving the highest possible economic benefit for the government."

Several trading firms have helped move Iraqi barrels to global buyers through the war, including Vitol Group and TotalEnergies SE, Bloomberg reported. TotalEnergies CEO Patrick Pouyanne said this week that the French major was among the largest traders of Iraqi crude.

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