Iraq holds tender for oil supertankers amid military threats in Strait of Hormuz

Iraq is putting out a call for supertankers. The Iraqi Oil Tankers Co. (IOTC) has launched a tender to charter two or more very large crude carriers, known as VLCCs, for 180 days to keep its oil flowing through the Strait of Hormuz. The tender is set to close around September 10-11, 2026, and it comes after Iraq’s cabinet formally approved the tanker hiring effort on September 4. Iraq’s crude oil exports have plummeted by over 97% since late February 2026, when conflict-related disruptions tied to the Iran situation turned the Strait of Hormuz from a busy shipping lane into something closer to a no-go zone for commercial vessels. The math behind the desperation SOMO, Iraq’s state oil marketer, is now offering crude at discounts of $25 to $30 per barrel below Dubai benchmarks. Freight rates for chartering VLCCs have hit record levels, with recent charters reportedly costing $23 to $25 million to transport approximately 2 million barrels. SOMO has also introduced ship-to-ship transfer options near Oman as an additional sweetener. If buyers are too nervous to sail deep into the Persian Gulf, Iraq will meet them closer to safer waters. Why the Strait of Hormuz matters so much The Strai...