Industry Odisha Bureau, July 22: Two Indian state run refiners have temporarily suspended crude oil loadings from Iraq. This comes amid rising security concerns in the Strait of Hormuz.
Indian Oil Corporation (IOC) has reportedly abandoned plans to load the supertanker Lila Jamnagar, which can carry up to 2 million barrels of crude oil. Sources say the company decided that sending a fully loaded tanker through the St. of Hormuz posed significant risks after several commercial vessels were struck by projectiles in recent days.
Mangalore Refinery and Petrochemicals Ltd. (MRPL), a subsidiary of ONGC, has also suspended crude oil lifts from Iraq due to worsening security situation in the region. Neither IOC, MRPL, nor the Ministry of Petroleum and Natural Gas has officially commented on the reports.
The move highlights the growing disruption to shipping through the Strait of Hormuz, one of the world’s busiest oil transit routes. The waterway carries a significant share of global crude exports, and recent attacks on commercial vessels have raised concerns over the safety of maritime traffic and energy supplies.
Iraq’s Oil Ministry acknowledged that the escalating conflict and heightened risks in the Strait of Hormuz have increased insurance costs and transit related challenges. Ministry spokesperson Salim Al-Rikabi said some companies had cancelled scheduled loading operations because of the deteriorating security environment.
Indian state-run refiners typically import Iraqi crude under long term contracts, with buyers responsible for arranging shipping. The latest suspension comes as the Indian government has also advised shipowners, vessel managers and recruitment agencies not to deploy Indian seafarers on ships passing through the Strait of Hormuz until further notice.
The developments highlight the impact of regional tensions on global oil trade and energy security.
