Iraqi crude oil discount narrows as risks in the Strait of Hormuz persist, cooling demand for Persian Gulf shipments

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智通财经2026/09/07 12:56

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Iraq is striving to find buyers for crude oil loaded from the Persian Gulf this month. Last week, the State Oil Marketing Organization (SOMO) significantly narrowed the crude oil discount, effectively raising the price. In previous months, Iraq had offered low-priced deals to attract traders to reload Iraqi crude amid high shipping costs and risks associated with crossing the Strait of Hormuz.
A government spokesperson stated that Iraq is seeking to lease oil tankers to transport crude oil and cross the Strait of Hormuz. SOMO’s predicament highlights buyers’ continued hesitancy to lift cargoes from within the Persian Gulf.
Several regional oil-producing countries are offering alternative shipping options outside the Strait of Hormuz through ship-to-ship transfers in the Gulf of Oman, but exports still require moving oil out of the waterway.
Saudi Arabia continues to supply crude oil from the Persian Gulf and kept the price of its flagship Arab Light crude unchanged for October, defying market expectations for a significant hike.
SOMO has also offered buyers the option to lift cargoes from locations outside the Persian Gulf, but this plan has not yet materialized, partly because the pricing has resulted in too few companies willing to bear the transportation risk of shuttling through the Strait of Hormuz.

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Iraqi crude oil discount narrows as risks in the Strait of Hormuz persist, cooling demand for Persian Gulf shipments

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