For the first time since the onset of the Iran war, Iraq is allowing crude buyers to take delivery outside the Persian Gulf, underscoring the resilience of oil exports through the strategic Strait of Hormuz. According to a document, Iraq's state-owned oil marketer SOMO is offering Basrah Medium and Basrah Heavy crude via a tender, with buyers permitted to receive cargoes through ship-to-ship transfers off the coast of Oman next month.

This marks a shift from Iraq's previous approach. Since the conflict erupted, Baghdad had been offering steep discounts to entice traders and refiners to navigate deeper into the Gulf to load Iraqi crude. The move aims to adapt to changing market conditions while maintaining export flows.

It remains unclear how SOMO plans to transport the crude out of the Gulf. However, during the war, several companies, including Vitol Group and TotalEnergies SE, have been assisting in shipping Iraqi oil to global customers. The CEO of French energy giant TotalEnergies, Patrick Pouyanne, said this week that the company is one of the largest traders of Iraqi crude.