Specialized sources revealed that Iraq recently sold approximately 10 million barrels of oil through its southern ports, with discounts ranging between 25 and 28 dollars per barrel. These discounts come amid rising transportation and insurance costs, as well as risks
associated with navigation through the Strait of Hormuz. Information indicated that most shipments were purchased by Indian companies and were loaded from the southern ports in recent days. Sources also noted that since the outbreak of the Iranian war, Iraq
has not been able to sell oil shipments for more than 100 dollars per barrel, despite global prices reaching about 117 dollars in the latest trading session. In a related context, an official from the Iraqi Oil Marketing Company stated
that the company recently could not sell oil for more than 85 dollars per barrel, noting that light oil shipments were sold for about 90 dollars nearly a month ago. When asked about the reason for the discounts, the Ministry
of Oil spokesperson explained that oil sales continue through the southern ports, and discounts are applied to cover transportation and insurance costs borne by the purchasing companies, noting that prices are variable. Although no detailed information was provided regarding discounts
reaching 28 dollars per barrel, the spokesperson confirmed that the ministry has no official information on this matter. Previous statements by the Minister of Oil showed an increase in Iraq's average oil exports to about 3.2 million barrels per day,
with nearly 3 million barrels passing through the Strait of Hormuz. These discounts are linked to transportation and insurance challenges resulting from restricted navigation in the Strait of Hormuz during the Iranian war, as well as the limited Iraqi tanker
fleet, causing purchasing companies to bear part of the shipment transport risks. At times, discounts reached about 32 dollars per barrel, while some light oil shipments were priced around 90 dollars in August 2026, before the highest prices Iraq recently
achieved declined to approximately 85 dollars per barrel. It is believed that Iraq owning a fleet of oil and petroleum product tankers—currently possessing only four tankers—could help reduce reliance on companies responsible for transporting and insuring shipments, thereby lowering discounts
linked to these costs and risks. In October 2026, the Minister of Oil announced a plan to purchase about 10 giant tankers, each capable of transporting nearly two million barrels, with an estimated total cost of two billion dollars. However,
no official steps have yet been taken to purchase or lease these tankers, and procedures are not expected to start before early 2027, with the first phase possibly limited to two tankers. These details reflect the challenges facing the marketing
of Iraqi oil amid navigation disruptions, rising insurance and transportation costs, and the limited national fleet, all factors affecting the final price Iraq obtains compared to global prices.
