Hormuz Crisis: India Seizes $25 Million Tanker to Buy Iraqi Oil
Hormuz Crisis: India Seizes $25 Million Tanker to Buy Iraqi Oil
2026-08-07
Shafaq News – Baghdad
The cost of shipping Iraqi oil to India has jumped to record levels, according to Reuters, after Reliance Industries booked a supertanker to transport two million barrels of Basra crude, amid escalating risks to navigation through the Strait of Hormuz.
Reuters quoted shipping industry sources as saying the company paid between $23 million and $25 million to charter the tanker, about 12 times the usual pre-war price, compared to just about $2 million when shipping rates ranged between 0.8 and 0.9 of the standard rate.
According to the sources, the tanker will be provided by South Korea’s Sinocor, one of a limited number of shipping companies that still send their tankers through the strait, despite the increasing risks facing commercial vessels.
She noted that a number of Indian and Chinese refineries this week looked for tankers to enter the strait and load crude from the Basra terminal, taking advantage of the discounts offered by Iraq, but none of them have yet been able to secure a booking, due to ship owners’ reluctance to risk entering the waterway.
The deal comes amid growing reluctance among tanker owners to enter the Strait of Hormuz, while the Iraqi oil marketing company SOMO has resorted to offering large discounts on Iraqi crude to attract buyers and compensate them for the high risks and costs of shipping.
According to a document seen by Reuters, SOMO is offering Iraqi crude at a discount of between $25 and $30 per barrel to Dubai crude prices, in an effort to maintain export flows despite disruption to shipping in the Gulf.
The deal highlights the extent of the repercussions Iraq is facing as a result of the Hormuz crisis, as the cost of delivering crude oil to Asian markets has become an additional burden on oil exports, at a time when refining companies are racing to secure available supplies.
shafaq.com
