Iraq Offers Deep Discounts to Oil Buyers Willing to Risk Strait of Hormuz

Iraq's state oil marketer, SOMO, is offering deep discounts to potential buyers willing to take its crude through the Strait of Hormuz. The discounts range from $27 a barrel for Basrah Medium to almost $30 a barrel for Basrah Heavy, depending on the loading window.

The move comes as Iraq struggles to export its oil due to disruptions caused by the US-Iran war and attacks on commercial shipping in the region. Iraq is OPEC's second-largest oil producer, but most of its exports rely on passing through the Strait of Hormuz before reaching global markets.

Iraq's oil production has dropped significantly since February, from 4.2 million barrels per day to around 1.9 million barrels per day in June, according to OPEC data cited by CNBC.