Iraq ships 2 mln barrels beyond Hormuz in first such move in decades

October 4, 2026 at 11:18 AM2 min

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Iraq's state-owned Iraqi Oil Tankers Company transported 2 million barrels of crude beyond the Strait of Hormuz for the first time in decades. The move shifts part of Iraqi oil sales from FOB Basra to cargo deliveries beyond the strait, giving SOMO better pricing opportunities. The change comes as missile and drone attacks complicate maritime transport through the strait.

Key Facts

A VLCC carried 2 million barrels of crude outside the Strait of Hormuz, according to The National.
Ali Qais, director general of Iraqi Oil Tankers Company, said the company was assigned this task for the first time in many decades.
Iraq is OPEC's second-largest producer and relies on oil for at least 90% of state revenue.
Before the war with Iran, about 3.3 million barrels per day were shipped from Basra terminals through the Strait of Hormuz.
Oil Minister Bassim Khudair said Iraq exported 3 million barrels per day since early September.

Shift in Sales Terms

Part of Iraqi oil sales is being shifted from the FOB model at the port of Basra to cargo deliveries beyond the strait. Ali Qais said the company held negotiations with specialized firms and chartered a VLCC tanker. The change is expected to give SOMO better opportunities to sell oil and set prices. Iraqi Oil Tankers Company is also negotiating the purchase of its own specialized tankers for crude transport.

Hormuz Route Pressure

The war with Iran has complicated maritime transportation through missile and drone attacks, rising insurance costs, and maritime confrontations. Buyers began demanding oil deliveries beyond the strait, while SOMO offered discounts on cargoes loaded in Basra. Baghdad is discussing resumption of the Iraq–Turkey pipeline via Ceyhan and oil transport by tanker trucks to Syria. These alternative routes can provide only part of the export volumes.

Export Capacity Plans

Oil Minister Bassim Khudair said Iraq exported 3 million barrels per day since early September. The government plans to increase export capacity to 5 million barrels per day after completing strategic pipelines to Fishkhabur and Baniyas. The plan also includes export terminals in the Strait of Hormuz.