The trading arm of Abu Dhabi National Oil Co. is offering to shuttle Iraqi oil exports through the Strait of Hormuz using dark-transit shipments, according to people familiar with the matter. The offer would transport Basrah and other crude grades to refiners in Asia.
The proposal comes as oil prices hover near one-week highs amid uncertainty over the strait's reopening. Both WTI and Brent benchmarks saw slight gains on Tuesday morning. A US-Iran agreement appears increasingly unlikely, with Washington demanding compensation before the vital waterway can reopen. Iran has insisted that sanctions must be lifted for the waterway to function. Ongoing geopolitical tensions continue to fuel market volatility and supply concerns.