Iraq Has Found a Way to Sell Oil Without Passing Through the Strait of Hormuz — Bloomberg
For the first time since the start of the war in the Middle East, Iraq has offered buyers the option of receiving oil outside the Persian Gulf. This move demonstrates an effort to maintain export stability amid risks to shipments through the Strait of Hormuz.
According to a document reviewed by the agency, the country’s state-owned oil company, SOMO, is offering oil through a tender that can be picked up next month via ship-to-ship transfers near the coast of Oman.
This marks a change in course for Iraq: since the start of the war, the country had been offering deep discounts to encourage traders and refineries to load its oil deep within the Gulf.
Now, however, oil from Iraq can be loaded without risk, without entering the Strait of Hormuz.
It is not known exactly how SOMO plans to transport the oil out of the Persian Gulf, but during the war, a number of companies, including Vitol Group and TotalEnergies SE, have already managed to deliver Iraqi oil to global consumers.
“The proposal to load Iraqi oil outside the Strait of Hormuz underscores that oil continues to flow from the Persian Gulf despite the constant threat of attacks,” the agency writes.
Tankers often pass through the narrow strait with their transponders turned off to avoid detection, and significant volumes of shipments help keep oil prices under control.
Bloomberg reports this.
Iraq has asked Iran to protect its oil exports through the Strait of Hormuz.
Iran is preparing for a new escalation of the war — WSJ.
The memorandum of understanding between the U.S. and Iran, intended to halt hostilities, expires on Monday, August 17. There are no signs that the parties are ready to extend the agreement: Washington and Tehran have been accusing each other of violating it for several weeks.
