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UAE Shuttles Iraqi Oil Through Hormuz

Bloomberg Markets •
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Abu Dhabi National Oil Co. is offering to shuttle Iraqi oil from Basrah through the Strait of Hormuz, using its dark-transit playbook to move the crude to Asian refiners, according to people familiar with the matter.

The proposal leverages the same logistics template that previously shipped Iranian oil, aiming to bypass regional bottlenecks while delivering Basrah and other crude to destinations in Asia. By routing the oil via the Strait of Hormuz, the company hopes to maintain steady export volumes despite heightened geopolitical risk. This initiative underscores the United Arab Emirates' growing role in regional energy logistics, as it seeks to secure supply lines for its own refineries and allied markets.

Analysts note that the dark-transit approach may reduce transit time compared with overland routes, potentially lowering freight costs and mitigating exposure to sanctions. If successful, the scheme could set a precedent for other Gulf producers seeking alternative pathways for Iraqi oil exports. The UAE's involvement highlights its strategic interest in maintaining uninterrupted flow of Middle East crude to global markets.

The move aligns with broader Gulf strategies to diversify export routes, ensuring resilience against regional disruptions and supporting the UAE's ambition to become a central hub for Middle East energy trade.