Riyadh Denies Iraqi Oil Minister's Claims on Tanker Purchases, Clarifies Shipping Cost Hike Reasons

The Kingdom of Saudi Arabia has refuted claims made by the Iraqi Oil Minister and the CEO of Iraq's State Organization for Marketing of Oil (SOMO) regarding the purchase of 25 oil tankers, affirming that this information is entirely incorrect. The clarification was issued today, Tuesday, by the Saudi Ministry of Energy in response to statements made during a session of the Iraqi Parliament, where these allegations were linked to a rise in Iraqi oil transport costs. The Ministry clarified that the Kingdom had not purchased the aforementioned number of tankers at all, and that the statements made by Iraqi officials Basim Mohammed Khdeir Al-Abbadi and Ali Nizar Al-Shatri bear no relation to reality. The Ministry of Energy emphasized that this clarification does not in any way diminish the Kingdom's full right to make its commercial and investment decisions in accordance with its specific needs and interests. The Ministry attributed the sharp increase in oil transport costs to a combination of regional and international factors that differ entirely from what the Iraqi officials indicated. These factors include the escalating military tension in the region, declared Iranian attacks targeting vessels, and severe disruptions to navigation through the strategic Strait of Hormuz. These combined circumstances have led to a sharp rise in shipping risks and marine insurance costs, as well as a noticeable decrease in the number of tankers willing to operate within this volatile region. The Ministry of Energy confirmed that these conditions have driven shipping costs in the region to exceptional levels, and attributing the rise in Iraqi oil transport costs to the Kingdom does not reflect the actual reasons behind this significant increase.