Iraq is currently tendering to lease two or more Very Large Crude Carriers (VLCCs) for a period of 180 days to facilitate the transport of the nation's oil through the Strait of Hormuz. This initiative, managed by the state-run Iraqi Oil Tankers Co., is intended to safeguard Iraq's crude exports in the face of ongoing military threats to the strait. The tender process is set to conclude on Thursday.
This move comes as global tanker freight rates are experiencing a significant surge, with supertanker earnings on the benchmark Middle East-to-China route reaching approximately $800,000 per day. This reflects increasing strain in oil markets due to conflicts in the Persian Gulf and complex logistical workarounds. The Iraqi government's efforts to secure these tankers have been approved by its cabinet and were initiated through the Iraqi Oil Tankers Co.
Earlier in June 2026, Iraq had already demonstrated an increase in oil loadings at its main port and boosted shipments out of the Persian Gulf, indicating that major OPEC producers in the region were successfully moving more barrels through the Strait of Hormuz. Tanker-tracking data from that period showed observed shipments of Iraqi oil exiting Hormuz or loading at Basra totaling around 7 million barrels, matching the combined volumes of April and May. This new tender further underscores Iraq's commitment to maintaining its oil export capacity and ensuring supply to global markets despite regional tensions.
