The strategy follows a recent operation to move 2 million barrels of Iraqi crude through the strait on a chartered VLCC, the first move of that scale by the state company in decades. High operational risks and charter rates of $1.3 million a day for supertankers have deterred buyers from sending vessels to Basra. While Director General Ali Qais Abdul Jabbar says this model allows the state marketer, SOMO, to seek better prices globally, Iraqi transits still require permission from Iran.
Wednesday, October 21, 2026
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Iraq Hires More Oil Tankers to Control Hormuz Transit
Commodities16 days ago
Baghdad is contracting a Suezmax and a very large crude carrier (VLCC) to arrive in the coming days to handle state oil exports through the Strait of Hormuz. The state owned Oil Tankers Co. plans to reissue a tender for additional vessels and intends to purchase its own supertankers to end its reliance on chartered shipping. This expansion aims to provide Iraq with greater control over its own shipments as commercial buyers have become reluctant to send ships into the contested waterway.
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