The supermajor is currently securing Very Large Crude Carriers to manage the transit, signaling a strategic bet on the stabilization of regional shipping lanes. Previously, Iraq’s export capacity was severely bottlenecked, forcing the nation to sell on a loading-only basis that required buyers to shoulder the risks and costs of navigating the Gulf themselves. By providing a delivered-cargo service, TotalEnergies is effectively absorbing those logistics, easing the flow of oil from OPEC’s second-largest producer.

This shift arrives as the market braces for a potential glut. Increased certainty regarding transit through Hormuz has already pressured global oil prices, leading analysts to revise their forecasts downward for the coming years. For Iraq, the ability to push consistent volumes to Asian markets is critical to stabilizing an economy that has struggled under the weight of restricted revenue and a heavy dependence on northern pipeline routes through Turkey.