First time in decades Iraq set to move its oil beyond the Strait of Hormuz

Iraq's state tanker company arranged a very large crude carrier to ship 2 million barrels beyond the Strait of Hormuz, marking a move toward offering oil outside the Persian Gulf.

Iraqi Oil Tankers Co. loaded a VLCC and arranged for it to sail through the strait "for the first time in decades," Director General Ali Qais Abdul Jabbar said. Previously, buyers would have arranged for supertankers to collect Iraqi crude at Basra, near the head of the Persian Gulf.

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The transit marks a shift in how Iraq markets its crude, with the state tanker company taking responsibility for moving a shipment beyond the critical strait. Delivering outside the Gulf could help Iraq reach refiners reluctant to send vessels through Hormuz and secure better prices, reducing the discounts needed to attract buyers to its southern terminals.