Iraq is struggling to sell Basra crude after SOMO cut discounts by $9–$10/bbl versus August. Basrah Medium for September was offered at $15–$18 below the benchmark. Hormuz is not reopened.
Iraq is struggling to sell Basra crude from inside the Persian Gulf this month after sharply reducing discounts — effectively hiking prices — which could jeopardize a pickup in the nation’s oil flows, Bloomberg reported (Sherry Su and Khalid Al Ansary; September 7, 2026).
State marketer SOMO cut discounts by $9–$10 per barrel versus August. Basrah Medium for September was offered at $15–$18 per barrel below the benchmark, versus August discounts of $25–$27. Ali Nizar said he rejected requests for a $30-per-barrel discount.
Shipping costs and Strait of Hormuz risks remain extremely high. Traders said the barrels became unattractive to collect; buyers remain reluctant to lift cargo inside the Persian Gulf. Supertanker earnings (TD3c TCE) reached $704,025, the highest since at least February 2017, on the same page. Two seafarers were killed in a tanker attack, according to the same report.
Iraq is seeking tankers and may need to reduce reliance on middlemen, but it lacks enough vessels and logistics capability. A plan to offer supplies outside the Gulf has not taken off because prices leave too little room for added transport and risk costs. Regional producers are using ship-to-ship transfers from the Gulf of Oman, but barrels still must pass through the waterway. Hormuz is not reopened.
This is a separate URL from Iraq seeking Hormuz tankers, Aramco Jizan, and WTI EU / WTI–OPEC.
Informational only. Not trading advice, signals, or a guarantee of any market outcome.
Written and fact-checked with AI assistance, reviewed by a human editor before publication.
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CENTCOM struck three IRGC crude carriers on 5 September after ballistic missiles toward two US Navy ships. Adm. Brad Cooper set the cost message. Reuters stamps Tehran’s counterclaim on Hormuz routes. Iran’s Rezaei flagged a new restricted maritime zone — attributed claims only.
WTI hovers around $90.00 in Asian hours Monday on weekend US–Iran escalation. A separate Sunday OPEC+ October-hold page quotes WTI at $92.57.
Saudi Aramco’s Jizan oil facilities were hit on Monday, the Financial Times reported citing sources. WTI surged back above $90 to about $90.40 (+1.27%). Hormuz is not reopened.