Iraq Offers Crude Outside Hormuz for First Time Since War Began

Iraq has taken a significant step to reduce its dependence on the Strait of Hormuz by offering crude oil for loading outside the strategic waterway. This move follows disruptions caused by the ongoing conflict, which have forced Baghdad to seek alternative routes.

The State Oil Marketing Organization (SOMO) issued a new tender this week for September-loading Basrah crude to be delivered outside Hormuz through a ship-to-ship transfer near the coast of Oman. The tender uses a vessel capable of entering the waterway, allowing buyers to receive Iraqi crude without sending their tankers into the Strait.

This shift in Iraq's efforts to keep crude exports moving is part of its broader strategy to maintain shipments despite regional changes. SOMO has also been working to increase exports through northern routes and has pursued longer-term alternatives through Turkey, Oman, Syria, and Jordan.