Saudi Arabia denies buying oil tankers after Iraq blames it for higher shipping costs

Saudi Arabia on Tuesday denied an Iraqi ​claim that it had bought 25 ​oil tankers, saying the information ‌was inaccurate, ​after Iraq linked the alleged purchases to a sharp increase in the cost of shipping its crude. Iraqi ‌Oil Minister Basim Mohammed told a parliamentary session that Saudi Arabia had bought 25 oil tankers worth an estimated $4.5 billion and said the purchases were behind a steep rise in ‌the cost of transporting Iraqi oil. His remarks were published by an Iraqi ‌media outlet on Facebook on Monday.

Mohammed said transport costs had risen from $26 per barrel to $37 per barrel. Saudi Arabia and Iraq are the two largest oil producers in the Organization of the Petroleum ⁠Exporting ​Countries. A public disagreement ⁠between their energy ministers is rare.

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

The dispute comes 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.