Iraq's Deepening Discounts: Up to $37 Per Barrel

Iraq's state oil marketer has been offering buyers contractual crude supplies for October at steep discounts. According to a document obtained by Bloomberg, the price reduction is as much as $37 per barrel compared to regional benchmarks.

This move comes after Iraq struggled with shipping issues due to its geographic position further from the Strait of Hormuz during the Middle East war. Without its own significant fleet, Baghdad is using discounts to incentivize buyers to keep barrels moving through the Persian Gulf despite ongoing risks to vessels.