Indian oil giants halt Iraqi crude loadings over Hormuz risks

Two of India's largest energy companies, Indian Oil Corp. (IOC) and Oil and Natural Gas Corp. (ONGC), have suspended the loading of Iraqi crude oil onto their vessels amid growing security concerns over shipping through the Strait of Hormuz.

According to Bloomberg, IOC halted the loading of 2 million barrels of Iraqi crude onto the tanker Lila Jamnagar, while the loading of a very large crude carrier operated by ONGC was also suspended.

The companies said the move was prompted by escalating tensions in the Middle East and increasing threats to commercial shipping in the Strait of Hormuz, which have heightened transport risks and driven up marine insurance costs.

India imports Iraqi crude under long-term supply agreements that require buyers to arrange their own shipping. Earlier, India's Ministry of Shipping advised domestic companies against deploying Indian seafarers on vessels transiting the Strait of Hormuz due to the deteriorating security situation.

The latest disruption comes amid renewed hostilities involving the United States and Iran. The two countries signed a memorandum of understanding in June aimed at ending military operations across multiple fronts, including Lebanon.

However, Washington resumed large-scale strikes against Iran on July 8, accusing Tehran of violating the agreement over issues related to the Strait of Hormuz.

By Aghakazim Guliyev