Shafaq News- Baghdad

Iraq has notified Iran of a flight ban imposed on Iranian airlines, which took effect last Wednesday, Iraqi Foreign Minister Fuad Hussein said Friday, adding that Baghdad intends to discuss the sanctions with the United States to provide services to Iranian aviation.

Speaking to Saudi channel Al Arabiya, Hussein said "the Iraqi economy is the first victim of Iran's ongoing war," noting that "Iraq exports oil through the Strait of Hormuz in cooperation with the American side.”

Meanwhile, Bloomberg reported that Iraq's state oil marketing company, SOMO, offered crude oil shipments to buyers at the last minute, citing complications from extremely high shipping costs for cargoes loaded from deep areas of the Gulf.

Increased availability of oil for purchase, an indication that some traders have pulled back, prompted SOMO to offer crude for loading in late September to at least two companies, Bloomberg cited four sources familiar with the matter.

If Iraq is unable to find buyers or vessels, the disruptions could add further upward pressure on crude prices at a time when shipping costs are rising sharply, and global markets are experiencing severe volatility, the sources predicted.

Based on Bloomberg's calculations, using data from the Baltic Exchange, shipping oil aboard very large crude carriers (VLCCs) from the Gulf of Oman to East Asia adds about $20 to the price of a barrel, equivalent to roughly a fifth of the crude's value, which currently exceeds $100 per barrel on loading, compared with only a small fraction of the delivery cost before the war.