Iraq offers up to $33/barrel discount on crude oil:India one of top buyers of Iraqi oil to benefit the most

The Iraqi government’s oil company is offering a discount of up to $33.40 per barrel on its ‘Basra Medium’ crude. According to a Bloomberg report, this discount is for buyers who want to load oil in May. However, to obtain this cheap oil, tankers will have to pass through the ‘Strait of Hormuz’, where war-like conditions currently prevail. Since the US-Iran conflict 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 this number was 12 in March. Under normal circumstances, around 80 tankers load oil from this port every month. Iraq was among the early countries to reduce production at the beginning of this conflict, as its storage tanks filled up rapidly due to halted exports. Maximum discount between May 1-10 According to a notice from Iraq’s state oil company SOMO: Risk will be the buyer’s responsibility SOMO has clearly stated in the notice that buyers who accept these terms will not be able to resort to the ‘force majeure’ provision, meaning the clause for canceling contracts in case of unforeseen circumstances. The company says that buyers are already aware that the situation is extraordinary, so they cannot back out of the deal on this basis. This means the responsibility for any attack en route will be entirely the buyer’s. Kayyarah Crude Also Offered Through Spot Tender According to traders, SOMO had also issued a spot tender for ‘Kayyarah Crude’ last week. For this too, oil barrels will have to be loaded by going deep inside the Persian Gulf. Currently, SOMO has not issued any official comment on this matter. India is Iraq’s Third Largest Oil Buyer According to Kepler, in February 2026, Iraq was among India’s top 3 oil suppliers: Knowledge Part: What is the Strait of Hormuz and why is it important? The Strait of Hormuz is a narrow maritime passage between the Persian Gulf and the Gulf of Oman. About 20% to 30% of the world’s crude oil passes through this route. Major oil-producing countries like Saudi Arabia, Iraq, UAE, and Kuwait depend on this route. In the event of war or tension, the closure of this route has reduced oil supply in the global market and prices have suddenly increased.