Iraq Faces Buyer Backlash After Boosting Oil Prices

Iraq's efforts to sell oil from Basra are facing challenges after the country sharply raised its prices. The state oil-marketing company SOMO increased the price of its barrels by hiking discounts, but this move may jeopardize a pickup in the nation's oil flows. Iraq had introduced cut-price deals months ago to encourage traders to lift its crude again amidst high shipping costs and the dangers of crossing the Strait of Hormuz.

The development is taking place after SOMO last week slashed the discounts it was offering for its barrels, effectively boosting prices. This change comes as Iraq tries to get its oil flowing again in the face of difficulties caused by sky-high shipping costs and the perils of navigating the Persian Gulf.