India halts Iraqi crude loadings after Hormuz attacks
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Indian Oil Corp. and Mangalore Refinery & Petrochemicals have suspended crude loadings from Iraq after a series of attacks on commercial tankers in the Strait of Hormuz. The decision leaves Iraqi supply effectively stranded as India, which depends on imports for over 85% of its oil, seeks alternatives from Russia and other Gulf states.
The Suspension
Indian Oil Corp. abandoned plans to load the VLCC Lila Jamnagar, concluding that sending a fully laden 2-million-barrel tanker through Hormuz was no longer worth the risk, according to Bloomberg. Mangalore Refinery has also halted Iraqi liftings as security in the region continues to deteriorate. India's shipping ministry has instructed shipowners not to deploy Indian seafarers on vessels transiting Hormuz until further notice.
Alternative Supplies
Russian crude continues flowing into India at near-record levels of roughly 2.45 million barrels per day this month, according to Kpler data. Supplies from the UAE and Saudi Arabia have remained resilient because both countries can bypass Hormuz via pipelines to Fujairah and Yanbu. Iraq, however, has no such workaround, leaving its crude stranded without a single well shutting down.
What's Next
India is not short of crude yet, but the pullback may deepen if attacks persist. It remains unclear whether other major buyers will follow India's lead, potentially reshaping global crude flows.
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India halts Iraqi crude loadings after Hormuz attacks
