Daijiworld Media Network - Riyadh

Riyadh, Sep 23: Saudi Arabia on Tuesday rejected a claim by Iraq that it had purchased 25 oil tankers, calling the information false.

Iraq had linked the alleged purchases to a sharp increase in the cost of transporting its crude oil.

During a parliamentary session, Iraqi Oil Minister Basim said Saudi Arabia had purchased 25 oil tankers valued at an estimated $4.5 billion. He claimed the acquisitions had contributed to a steep rise in the cost of carrying Iraqi crude.

An Iraqi media organisation shared his remarks on Facebook on Monday.

According to Mohammed, the transportation cost had increased from $26 to $37 a barrel. Saudi Arabia and Iraq are among the biggest oil-producing nations in the Organisation of the Petroleum Exporting Countries (OPEC), making a public disagreement between their energy ministers an uncommon occurrence.

Saudi Arabia's Energy Ministry, however, said in a statement that the country had not purchased the tankers.

The ministry attributed the rise in oil transportation costs to several factors, including armed confrontation in the region and difficulties in navigating the Strait of Hormuz.

It said shipping rates in the region had reached "exceptional levels" because of the prevailing circumstances.

The conflict has coincided with continued attacks targeting Saudi cities, ships and energy infrastructure, raising concerns over global oil supplies and further disrupting the Red Sea, an important alternative export route for Gulf oil producers while traffic through the Strait of Hormuz remains severely restricted.

Iraq is among the countries most affected by the closure of the strategic waterway.

Vessels continue to face attacks in the region, while traffic through the Strait of Hormuz remains significantly lower than levels recorded before the fighting.