Indian Firms Cancel Iraqi Oil Loadings Amid Rising Strait Risks

Indian oil companies have cancelled crude oil loadings from Iraq's Basra terminal, citing increased risks and attacks on vessels traversing the Strait of Hormuz. The state-run Indian Oil Corporation had halted preparations to load approximately two million barrels of Iraqi crude onto the very large crude carrier (VLCC) "Lila Jamnagar" around July 23. Similarly, another state refiner, Mangalore Refinery and Petrochemicals Limited (MRPL), also called off its plans to load oil from Iraq aboard the Indian-flagged tanker "Desh Gaurav." This development follows India's advisory to ship owners, operators, and recruitment firms against deploying Indian seafarers on vessels transiting the Strait, in light of renewed hostilities in the region. The maritime regulatory body has urged ship captains to exercise caution regarding the security situation in the Gulf, the Strait, and adjacent waters, calling for continuous monitoring of navigational warnings. Prior to the current tensions, approximately 20 percent of the world's energy supplies passed through the Strait. Tensions have escalated since the collapse of the fragile truce and the resumption of intense exchanges, exacerbating disruptions to navigation through the vital waterway.