Iraq’s government oil company is giving a discount of up to $ 33.40 per barrel on its ‘Basra Medium’ crude. Currently its price is around $120 per barrel. According to Bloomberg report, this discount is for those buyers who want to load oil in May. However, to get this cheap oil, tankers will have to pass through the ‘Strait of Hormuz’, where a war-like situation is currently prevailing. Since the US-Iran war that began in late February, it has become almost impossible for oil tankers to pass through Hormuz. Only 2 ships loaded oil in April According to ship-tracking data, only 2 ships loaded oil from Iraq’s southern Basra port in April, while the number was 12 in March. Under normal circumstances, about 80 tankers load oil from this port every month. Iraq was one of the first countries to reduce production early in the conflict, as its storage tanks filled rapidly due to the halt in exports. Highest discount between May 1 and 10 According to the notice of Iraq’s state oil company SOMO: The risk will be the responsibility of the buyer. SOMO has clearly said in the notice that the buyers who accept these conditions will not be able to take recourse to the provision of canceling the contract in case of ‘force majeure’. The company says that the buyers know in advance that the circumstances are extraordinary, so they cannot back out of the deal on this basis. This means that any attack in transit will be the sole responsibility of the buyer. Qayyarah crude also offered through spot tender According to traders, SOMO had also issued a spot tender for ‘Qayyarah Crude’ last week. For this also, the oil barrels will have to be loaded deep inside the Persian Gulf. At present, there has been no official comment from SOMO on this matter. India is Iraq’s third largest oil buyer According to Kpler, Iraq was among the top 3 oil suppliers to India in February 2026: Knowledge Part: What is the Strait of Hormuz and why is it important? The Strait of Hormuz is a narrow sea passage between the Persian Gulf and the Gulf of Oman. About 20% to 30% of the world’s crude oil passes through this route. Big oil producing countries like Saudi Arabia, Iraq, UAE and Kuwait depend on this route. Due to closure of this route in case of war or tension, the supply of oil in the global market has decreased and prices have suddenly increased.
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Iraq is giving discount of up to 33 dollars on crude oil: Will have to pass through the Strait of Hormuz amid war; India is the third largest buyer of Iraqi oil
