Iraq and Saudi Arabia dispute rising oil transport costs

Iraq and Saudi Arabia are engaged in a rare public dispute regarding the rising costs of transporting crude oil. Iraqi Oil Minister Basim Mohammed claimed during a parliamentary session that Saudi Arabia’s purchase of 25 oil tankers, valued at approximately $4.5 billion, has contributed to a sharp increase in Iraqi oil shipping costs. According to Mohammed, transport expenses have risen from $26 to $37 per barrel.

Saudi Arabia’s Ministry of Energy has denied these claims, stating the information is inaccurate and that no such purchase of 25 tankers took place. Riyadh attributed the surge in shipping and insurance costs to regional military tensions, attacks on vessels, and navigation disruptions in the Strait of Hormuz. The Saudi ministry noted that these regional conditions have pushed maritime costs to “exceptional levels” and reduced the number of tankers ready for operation.