Saudi Arabia Denies Buying 25 Oil Tankers and Explains Surge in Iraqi Crude Shipping Costs

Saudi Arabia’s Ministry of Energy on Tuesday denied claims that the Kingdom had purchased 25 oil tankers, contributing to higher transportation costs for Iraqi crude, stressing that the sharp increase in regional shipping rates is linked to other security and maritime factors.

The ministry said Saudi Arabia had not purchased the 25 tankers in question, describing the claims as inaccurate, while stressing that the Kingdom retains the right to make commercial and investment decisions based on its own needs and interests.

It explained that the significant rise in oil transportation costs has been driven by escalating military tensions in the region, reported attacks on vessels, disruptions to maritime traffic through the Strait of Hormuz, higher shipping risks and insurance premiums, as well as a decline in the number of tankers willing to operate in the area.

The ministry added that these developments have pushed regional freight costs to exceptional levels, stressing that attributing the rise in Iraqi oil transportation costs to Saudi Arabia’s alleged purchase of tankers does not reflect the actual factors behind the increase.