Iraq Offers Major Oil Discounts to Incentivize Buyers Crossing Hormuz

Bloomberg reported on Tuesday that Iraq is offering significant discounts on long-term oil shipments for May 2026. To collect these cargoes from within the Gulf, tankers must navigate the Strait of Hormuz despite rising regional tensions. According to a SOMO notice, discounts for Basra Medium crude reached $33.40 per barrel below official prices. This May 3 pricing strategy aims to incentivize buyers to manage maritime risks and maintain Iraqi export flows amid the current 2026 energy market instability.