Iraq's SOMO Tells Crude Buyers: Collect Your Oil — Hormuz Is Open for Iraqi Shipments

Iraq's state oil marketer SOMO moved fast on Monday. In a document circulated to customers and reviewed by Reuters, the company asked buyers to submit crude oil lifting schedules within 24 hours — the clearest signal yet that Baghdad views the Hormuz exemption as operationally real, not just diplomatic language.

The backdrop: Iran declared on April 4 that Iraq was exempt from any restrictions on transit through the Strait of Hormuz. The announcement came after weeks of selective carve-outs for individual countries, and was the most significant single exemption yet in terms of volume. Iraq exports roughly 3.3 million barrels per day, the majority of which transits Hormuz en route to Asian refiners.

Data from LSEG and Kpler confirmed the exemption was functional within 24 hours. A Petronas-chartered vessel loaded with Iraqi crude transited the strait on April 5, passing close to the Iranian coastline before heading toward Pengerang, Malaysia, where it is expected to offload in mid-April. The transit — verified by shipping intelligence rather than government statements — is the most credible proof of concept the market has seen since the Hormuz crisis began.

Bloomberg reported that SOMO's Sunday notice to customers explicitly stated that Iraqi shipments were now "exempt from any potential restrictions," citing media reports of the Iranian guarantee. The 24-hour deadline for submitting lifting schedules reflects the urgency SOMO is attaching to resuming full export logistics. Customers who had deferred loadings or diverted vessels now face a narrow window to get into the queue.

The Malaysia factor adds another dimension to the Hormuz exemption map. Transport Minister Anthony Loke confirmed that Malaysian tankers transiting the strait would not be subject to any toll imposed by Iran. The country's foreign minister subsequently said seven ships linked to Malaysian companies — including Petronas, Vantris Energy, and MISC — were awaiting clearance. The Malaysia carve-out, first signalled on March 26, appears to be holding.

Operators and charterers watching the situation should note what the exemptions do and don't cover. Iran's selective access framework has granted transit rights to Iraq and Malaysia, with Oman demonstrating a coastal bypass corridor in early April. China, Russia, India, and Pakistan have also been identified as benefiting from tacit clearance. What has not changed: OFAC-sanctioned and UANI-listed tankers continue to operate under uncertainty, frequently switching AIS signals off before entering the strait, reportedly paying for clearance at Qeshm Island.

For the tanker market, Iraq's re-entry signals a potential partial recovery in VLCC and Suezmax demand on the Arabian Gulf–East route, which had been severely disrupted. Kpler data showed significantly reduced laden tanker movements through Hormuz since the crisis began. If Iraqi exports resume at closer to pre-crisis levels, the short-term tonnage demand picture shifts materially.

What this means for operators: The SOMO notice is a call to action, not a guarantee. Shipowners and charterers planning Iraqi crude liftings should secure war risk cover on a voyage-by-voyage basis, verify vessel eligibility under Iran's evolving clearance framework, and monitor UANI and OFAC lists carefully. The exemption is bilateral and informal — it can be withdrawn. The Petronas transit demonstrates the route is physically viable today. Whether that holds through next week depends on the wider conflict trajectory.