Iraq’s state-owned Oil Tankers Company has transported 2 million barrels of crude oil through the Strait of Hormuz aboard a very large crude carrier (VLCC), in what the company described as its first operation of this kind in decades.
The shipment marks a shift in how Iraq handles some of its crude exports. Instead of delivering the oil at the port of Basra, the company transported the cargo through the strategic waterway, giving Iraq’s state oil marketer, SOMO, greater flexibility over where and how the crude is sold.
Ali Qais Abdul Jabbar, director general of the Oil Tankers Company, said the arrangement could allow SOMO to take advantage of better sales and pricing opportunities. He also said the company is working to acquire specialized crude tankers to expand its fleet and strengthen its ability to compete with regional shipping companies.
The move comes as shipping through the Strait of Hormuz remains heavily affected by the conflict between the United States and Iran. Reuters reported in late September that crude exports through the strait had recovered to about 9.7 million barrels per day, but remained well below pre-conflict levels. Nineteen VLCCs, each capable of carrying about 2 million barrels, crossed the strait during the week covered by the report.
Iraq has previously obtained Iranian permission for its oil tankers to transit the Strait of Hormuz, according to the company’s statement. The waterway has been at the center of the wider U.S.-Iran confrontation, creating uncertainty for oil producers and shipping companies operating in the Gulf.
The Strait of Hormuz is one of the world’s most important energy corridors, and disruptions there can affect crude and fuel markets well beyond the Middle East. Iraq’s decision to move crude beyond Basra and strengthen its tanker fleet reflects efforts to maintain export flexibility as regional security conditions remain uncertain.
