- Iraq informed Asian traders its crude can now transit the Strait of Hormuz with Iranian exemption
- SOMO requested lifting schedules and vessel details, stating all loading terminals are fully operational
- Iran exempted Iraq from shipping restrictions around the Strait of Hormuz, easing transit concerns
Iraq has told Asian traders and refiners they can load its crude as vessels carrying the country's oil are now able to transit the Strait of Hormuz thanks to an Iranian exemption, testing buyers' confidence in the security guarantee.
In a notice sent on Sunday, the country's State Organisation for Marketing of Oil, known as SOMO, said Iraqi shipments were now "exempt from any potential restrictions," citing media reports.
It asked buyers for lifting schedules, including vessel details and volumes requested, adding all loading terminals including Basrah were "fully operational."
Customers were given 24 hours to respond.
SOMO didn't immediately respond to a request for comment.
It's not immediately clear if the reported arrangement will apply to all Iraqi oil, or just the nation's tankers.
Buyers expressed caution about the move.
Iran said over the weekend that its neighbour was now exempt from shipping restrictions around the vital waterway.
The country's military spokesman did not provide details on which tankers or cargoes would be covered, but tanker Ocean Thunder, carrying a million barrels of Iraqi crude, crossed the narrow waterway on Sunday.
Iraq often sells oil on a free-on-board basis, meaning refiners sort out their own shipping, but it has struggled to export crude since the effective closure of Hormuz a month ago.
Asian buyers reached by Bloomberg said they were seeking clarity on conditions, including whether Iraq would offer the use of its own tankers, thereby providing extra security through Hormuz.
They asked not to be named, as they are not authorised to speak to the media.
Aside from a pipeline system that crosses Turkey, Iraq has only limited ability to work around the narrow waterway connecting the Persian Gulf with the world.
Iraqi oil exports plunged by roughly 97 per cent to a daily average of 99,000 barrels in March from the prior month.
Transits through the critical waterway have been picking up in the past week, with data on Saturday showing the highest seven-day rolling average since the war began.
Traffic overall remains at a trickle compared with prewar numbers.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
