What specific Iraqi crude grades is TotalEnergies offering to Asian refiners, and how does its delivery model differ from SOMO’s previous spot offerings?

TotalEnergies is offering Basrah Medium and Basrah Heavy crude grades to refiners in South Korea, Taiwan, and China. Unlike Iraq’s state oil marketer SOMO—which previously sold Iraqi crude on a loading basis requiring buyers to arrange vessels and navigate the Strait of Hormuz themselves—TotalEnergies is offering to collect and deliver the shipments directly to customers across Asia.

Why is TotalEnergies’ move significant in the context of recent developments in the Strait of Hormuz and regional oil trade?

TotalEnergies’ offer is significant because it follows improved shipping conditions through the Strait of Hormuz after an interim US–Iran peace deal, which has enabled safer and more reliable transit; this has allowed Iraq—whose exports had lagged behind other Persian Gulf producers—to accelerate crude deliveries to market, and has intensified supply competition in Asia, contributing to falling crude prices and prompting Saudi Arabia and the UAE to offer more flexible sales terms.

TotalEnergies Offers Iraqi Oil to Asian Refiners as Supply Swells

Jul 3, 2026

TotalEnergies is offering millions of barrels of Iraqi crude to Asian refiners amid swelling global supply. This move aims to accelerate exports from Iraq following improved shipping through the Strait of Hormuz, contributing to falling crude prices.

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