Iraq Moves 2 Million Barrels Through Hormuz on State VLCC
State tanker firm says first such voyage in decades as war disrupts Gulf shipping
3 min read
File photo: Strait of Hormuz from space, with ship wakes near the waterway. Photo: NASA, Public domain, via Wikimedia Commons
Iraq’s state-owned Oil Tanker Company said it moved two million barrels of Iraqi crude through the Strait of Hormuz on a very large crude carrier, describing the shipment as the firm’s first such operation in decades amid the US-Iran war that has disrupted Gulf shipping.
What the company announced
Director General Ali Qais Abdul Jabbar said in a statement, reported by Reuters on Saturday, that the company transported the crude aboard a VLCC through the strait rather than delivering it only at the port of Basra. According to Reuters, the shift is intended to give Iraq’s state oil marketer SOMO greater flexibility in how and where it sells the crude.
Abdul Jabbar said the move could allow SOMO to take advantage of better sales and pricing opportunities, Reuters reported. He also said the Oil Tanker Company is working to buy and own specialized crude oil tankers to expand its fleet and compete with regional shipping companies.
Regional shipping pressures
UK Maritime Trade Operations and other shipping monitors have reported multiple tanker incidents near Hormuz and Oman in recent days, including vessels struck by unidentified projectiles. Freight rates for tankers willing to risk the southern transit lanes have remained elevated as oil producers and shippers look for ways to move crude despite the fighting.
Iraq’s announcement does not end the wider Hormuz disruption, but it signals Baghdad’s attempt to keep some state-managed crude moving beyond Basra loadings while Iran’s transit restrictions and US naval operations continue to shape Gulf energy flows.
What comes next
Neither SOMO nor Iraq’s Oil Ministry immediately detailed the VLCC’s destination, buyer, or whether further Hormuz loadings are planned. Any expansion of Iraqi-flagged or state-controlled tanker sailings would still depend on permissions, security conditions, and insurance for vessels using the contested waterway.
Reporting based on Reuters; also noted by Middle East Eye’s live coverage of the same company statement.
Why Hormuz matters now
The Strait of Hormuz, which connects the Persian Gulf to the Gulf of Oman, carried a large share of global oil and liquefied natural gas before the US-Iran conflict. Shipping through the waterway has been sharply disrupted during the war, with commercial traffic often reduced to a trickle and repeated reports of projectile strikes on tankers.
Iraq has previously secured Iranian permission for Iraqi oil tankers to transit the strait, which Iran has effectively closed during its conflict with the United States, Reuters noted. Tehran has asserted control over transit rules through bodies such as the Persian Gulf Strait Authority, while Washington has maintained a naval presence and a blockade on Iranian ports.
