Commodities
Saudi Arabia Denies $4.5 Billion Tanker Purchase Claim Amid Strait of Hormuz Disruptions
Saudi Arabia has denied claims that it purchased 25 oil tankers for $4.5 billion, as tensions rise in the Strait of Hormuz.
The denial comes after Iraqi Oil Minister Basim Mohammed Khudair Al-Abbadi stated during a parliamentary session that the alleged acquisition tightened tanker availability and pushed Iraqi crude transport costs from $26 to $37 per barrel.
Saudi Arabia's Ministry of Energy attributes the surge in freight rates to military escalation, commercial vessel attacks, and soaring war risk insurance premiums rather than any fleet acquisition by the kingdom.
The dispute highlights underlying tensions in the global secondhand sale and purchase tanker market, where effective tanker supply dictates current market dynamics.