Is it safe? Iraq informs buyers that they can "lift their own oil" and that the crude oil is "exempted" from passing through the Strait of Hormuz.

Iraq has informed Asian traders and refineries that due to exemption of its oil vessels from Iran, they are now able to pass through the Strait of Hormuz, and buyers can ship the oil themselves. This move is testing the confidence of buyers in this security guarantee. The Iraqi State Oil Marketing Organization (SOMO) cited media reports in a notice issued last Sunday, saying that Iraqi oil shipments are now "not constrained by any potential restrictive measures." Over the weekend, an Iranian military spokesperson said in a video statement released by the state news agency IRNA that "the brotherly country of Iraq" is exempt from any restrictions imposed by Iran on the Strait of Hormuz, and that the restrictions only apply to "hostile countries." If the exemption is implemented, theoretically up to 3 million barrels of Iraqi oil can be shipped daily. SOMO has requested that buyers submit loading plans, including the name of the ship, type of ship, and required quantity, and stated that all loading terminals, including Basra, are "fully operational." Customers are required to respond within 24 hours. The organization did not immediately respond to requests for comment. It is currently unclear whether the exemption arrangement applies to all Iraqi oil or only to the country's own oil tankers. Buyers are cautious about this move. The Iranian military spokesperson did not disclose specific tankers or cargo covered by the exemption, but a tanker named "Ocean Thunder" carrying 1 million barrels of Iraqi oil passed through the narrow waterway on Sunday. Iraq typically sells its oil on a free on board (FOB) basis, with refineries responsible for transportation. However, Iraqi oil exports have been blocked since the Strait of Hormuz effectively closed a month ago. Some Asian buyers have stated that they are seeking clarification on the conditions, including whether Iraq will provide its own tankers for transportation, thus providing additional security when passing through the Strait of Hormuz. In addition to a pipeline system passing through Turkey, Iraq has limited alternative capacities to bypass this narrow waterway connecting the Persian Gulf to the world. Iraqi crude oil exports in March dropped by about 97% compared to the previous month, averaging only 99,000 barrels per day. Transportation through this critical waterway has increased over the past week. Data from last Saturday showed that the seven-day moving average throughput reached the highest level since the outbreak of war. However, compared to pre-war levels, overall throughput is still minimal. Iran's control over the Strait of Hormuz is one of its most important cards in the current conflict. This exemption declaration is the most significant relaxation Iran has made in terms of passage arrangements to date. In theory, this exemption has a significant impact, as Iraq is one of the world's major oil-producing countries, with daily production involving export volumes of up to 3 million barrels.