Iraq is struggling to find buyers for its crude from Basra after sharply raising oil prices, potentially jeopardizing a pickup in exports. The state oil-marketing company SOMO last week slashed discounts it had been offering, effectively boosting prices. Iraq had introduced cut-price deals months ago to get traders to lift its crude amid sky-high shipping costs and dangers of crossing the Strait of Hormuz.

The Iran war has hit Iraq especially hard, squeezing its oil exports.