UAE Offers to Deploy Dark-Transit Tactics to Shuttle Iraqi Crude Through Hormuz

Abu Dhabi National Oil Co. has initiated a rare strategy to shuttle Iraqi crude exports through the contested Strait of Hormuz.

The UAE enterprise is deploying dark-transit operations to supply Asian refiners, marking a highly unusual shift in regional energy logistics.

The state-owned oil company is utilizing methods typically designed to obscure vessel tracking.

Tankers are conducting brief voyages with disabled transponders to evade detection in the Persian Gulf, according to Bloomberg.

Once these ships navigate past the immediate threat zones, they transfer their Iraqi crude shipments to other vessels waiting offshore.

Adnoc has recently extended spot cargo offers to Asian buyers utilizing this precise methodology for Basrah crude and other regional grades.

Navigating Gulf Tensions

This shuttling framework has emerged as a critical mechanism for sustaining global oil flows amid the ongoing Iran war.

By securing export routes out of the Persian Gulf, the operations are actively mitigating severe spikes in international crude prices.

Adnoc has established itself as the most effective operator in moving oil through the congested waterway.

However, the operational risks remain severe, as several of the company's tankers were targeted and attacked while transiting Hormuz last week.

The security environment remains volatile due to stalled diplomacy. The U.S. and Iran have hardened their respective negotiating positions regarding the reopening of the strait.

Despite this diplomatic friction, Pakistan’s defense minister noted Tuesday that Washington and Tehran were close to a preliminary arrangement.

The erratic pace of these negotiations and persistent maritime strikes have severely restricted standard export activities.

Shifting Market Dynamics

Historically, the trading house Vitol Group and France's TotalEnergies SE managed the bulk of Iraqi crude transportation.

Adnoc’s entry into this specific transit sector appears to be shifting these established logistics networks.

Other global traders have reduced their Hormuz operations this month as regional hostilities escalated.

In response, Iraq’s state oil marketing company, SOMO, implemented aggressive financial incentives for operators willing to brave the strait.

SOMO is offering unprecedented discounts reaching up to $30 a barrel below benchmark prices for shipments loading this month.

These deep price cuts aim to offset the extreme risks associated with navigating the contested corridor.

The UAE’s intervention may already be yielding volume increases for Baghdad. Ali Nizar, the chief of SOMO, confirmed Tuesday that Iraqi crude exports have surged to "around 2 million barrels a day this month."

This figure marks a significant increase from the 1.5 million to 1.7 million barrels a day estimated by the Iraqi oil minister last week.