Iraq says crude tankers cross Hormuz as oil sales partially recover

BAGHDAD — Tankers carrying Iraqi crude are passing through the Strait of Hormuz and sales are gradually recovering, the Oil Ministry said Tuesday, one day after Reuters reported that the state marketer offered discounts of up to $29.80 a barrel to persuade buyers to collect cargoes from terminals inside the waterway.

Ministry spokesperson Salim al-Rikabi said sales had improved in recent months. “Last month was better than the one before it, and the month before that was better than the preceding month,” he told the Iraqi News Agency. He confirmed tankers loaded with Iraqi crude were crossing the strait, some carrying as much as 2 million barrels.

Rikabi said Iraq sells crude free on board, transferring responsibility to the buyer once a vessel leaves the loading terminal. “After tankers leave the port, they pass through the Strait of Hormuz, and the ministry bears no responsibility for their routes or for obtaining the necessary approvals,” he said. The ministry continues tracking vessels through international monitoring systems, and the State Organization for Marketing of Oil follows shipments until they reach refineries.

SOMO offered discounts of $25 to $29.80 a barrel on August-loading Basrah crude depending on grade and loading period, Reuters reported Monday, as restricted shipping and security risks continued to disrupt exports.

Iran and Oman are negotiating over reopening the strait. Iranian Foreign Minister Abbas Araghchi said Sunday the talks had reached their final stages while warning that renewed military action remained possible if they failed. Iraqi Foreign Minister Fuad Hussein discussed them with Araghchi by phone and said Baghdad hoped for an agreement as soon as possible. There is no confirmed U.S.-Iran agreement to reopen the waterway. President Donald Trump said negotiations were underway and called them Iran’s “last chance,” saying the strait should be fully reopened before talks move to Tehran’s nuclear program.