Saudi Arabia Rejects Allegations on Oil Tanker Purchases

Saudi Arabia has rejected allegations that it purchased 25 oil tankers and denied any involvement in the increase of Iraqi oil transportation costs. The Ministry of Energy released a statement on Tuesday, clarifying that Saudi Arabia had not acquired the tankers mentioned by Iraqi Oil Minister Bassem Mohammed Khudair Al-Abadi and Ali Nizar Al-Shatari, chairman and director general of Iraq's State Organization for Marketing of Oil.

The ministry attributed the rise in oil transportation costs to military escalation in the region, Iranian attacks on vessels, and disruptions to shipping through the Strait of Hormuz. These factors led to a sharp increase in shipping risks and insurance costs, as well as a reduction in the pool of tankers available for operation in the area.

The ministry stated that these conditions resulted in exceptional levels of regional freight costs. It emphasized that linking the rise in Iraqi oil transportation costs to Saudi Arabia does not reflect the actual causes responsible for the surge.