Iraq, as one of the major oil producers in the Middle East, has initiated a new approach in its oil export strategy by arranging a large tanker to transport 2 million barrels of oil from the port of Basra outside the Strait of Hormuz. This action, according to Ali Qais Abdul Jabbar, the director general of Iraq's state oil tanker company, took place on April 24, 2026, marking the first time in several decades.
Changes in Iraq's Oil Market
Previously, buyers of Iraqi oil were responsible for arranging super tankers to collect crude oil from the port of Basra. However, with this change, the state oil tanker company of Iraq has taken direct responsibility for transporting the shipments, and this action could help increase oil sales and reduce discounts necessary to attract buyers.
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With this move, Iraq aims to provide oil to refineries that refrain from sending ships through the Strait of Hormuz. This action could also help improve Iraq's oil prices and enable the fulfillment of greater buyer needs.
Financing and Purchasing Tankers
The Iraqi Minister of Oil, Basim Mohammed Khudair, has announced that the country is seeking financing to purchase tankers for the state oil tanker company. Ownership of the ships could help increase exports and improve Iraq's financial returns. No specific details have been provided regarding the number of tankers intended for purchase.
Last month, Iraq's average crude oil exports were about 2.6 million barrels per day, an increase from 2 million barrels per day in August, but still below the usual level of 3.3 to 3.5 million barrels per day before the onset of the war. Meanwhile, Baghdad is looking for alternative export routes, including a northern route through Turkey and a proposed pipeline to the Syrian port of Baniyas.
Iraq is also facing multiple challenges regarding the security of its export routes. Oil producers across the Middle East are working to strengthen their tanker fleets to resume flows of crude oil and refined fuels through the Strait of Hormuz. This action seems particularly necessary following disruptions caused by the war with Iran.
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