Saudi Arabia Rejects Iraqi Claim of Tanker Buys Amid Shipping Cost Spat

Saudi Arabia has rejected an Iraqi assertion that it purchased 25 oil tankers, saying the claim is inaccurate, after Baghdad tied the alleged acquisitions to a sharp jump in the cost of moving its crude by sea.

Iraqi Oil Minister Basim Mohammed told a parliamentary session that Saudi Arabia had bought the vessels, worth an estimated $4.5 billion, and argued the purchases were responsible for a steep rise in transport costs for Iraqi oil. His remarks were published by an Iraqi media outlet on Facebook on Monday. Mohammed said transport costs had climbed from $26 per barrel to $37 per barrel.

In response, Saudi Arabia's energy ministry said it had not bought the tankers. It attributed the increase in oil transport costs to several factors, including regional military conflict and disruption to navigation through the Strait of Hormuz, saying those conditions had pushed shipping costs in the region to "exceptional levels".

The exchange is notable because Saudi Arabia and Iraq are the two largest oil producers in the Organization of the Petroleum Exporting Countries, and a public disagreement between their energy ministers is rare.

The dispute unfolds as attacks on Saudi cities, energy infrastructure and shipping continue, raising concerns about global oil supplies and threatening the Red Sea, a key alternative export route for Gulf producers while traffic through the Strait of Hormuz remains disrupted.

Iraq has been among the countries most affected by the closure of the strategic waterway. Traffic through the strait remains well below pre-conflict levels, and vessels continue to face attacks in the area.