Iraq transports its oil past Hormuz for first time in decades as war with Iran chokes exports
Iraq 's state oil company has transported its own crude beyond the Strait of Hormuz for the first time in decades as the Iran war threatens its export route. The state-run Iraqi Oil Tankers Company shipped two million barrels of crude on a Very Large Crude Carrier (VLCC) to outside the strait, its director general Ali Qais told the Iraqi News Agency (INA). The task was assigned to the company for…
Iraq's state oil company has transported crude oil beyond the Strait of Hormuz for the first time in decades, as tensions with Iran threaten traditional export routes. Ali Qais, director general of the Iraqi Oil Tankers Company, revealed that two million barrels of crude were shipped outside the strait on a Very Large Crude Carrier (VLCC) for the first time in decades.
This shift from the previous Basra port model aims to secure better sales and pricing opportunities. The company is now in talks to purchase and own specialized crude tankers to compete with regional peers. Iraq, the second-largest Opec producer, relies heavily on oil for at least 90% of state revenue, with most exports previously shipped through the Strait of Hormuz.
However, the narrow waterway has been effectively closed by Iran during the ongoing war, leading to disruptions and risks for Iraq. The government has been exploring alternative routes, including reopening the Iraq-Turkey pipeline and trucking crude to Syria. The VLCC operation signifies a new strategy for Iraq to guarantee delivery and secure better prices, rather than leaving buyers to bear the war risk premium.
The tanker company, which was largely destroyed during previous conflicts, is working to rebuild its fleet to regain control over its primary source of income.
Written by urgent.news from The National UAE's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
