NEW YORK, May 5. /TASS/. Iraq has sharply cut oil prices for buyers willing to ship crude through the Strait of Hormuz amid the escalating tensions in the region, Bloomberg reported.

Iraq’s State Organization for Marketing of Oil (SOMO) has offered discounts of up to $33.4 per barrel off the official price for Basrah Medium crude oil for May delivery, according to the report. Buyers are required to arrange for the crude to be shipped through the Strait of Hormuz on their own. The proposed discounts reflect Baghdad’s desire to stimulate exports amid ongoing risks and restrictions in the global oil market, Bloomberg wrote.

Iraq previously slashed oil production due to overflowing storage facilities and problems with exports through the Strait of Hormuz caused by the conflict surrounding Iran. Some supplies continue to be shipped via pipeline through Turkey, but their volumes remain significantly lower than seaborne shipments, according to the agency.