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 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