Photo via Bloomberg Markets
According to Bloomberg Markets, two Indian state-owned refineries have halted their crude oil procurement from Iraq, citing escalating security concerns in the Strait of Hormuz. The decision reflects growing challenges in guaranteeing the safe passage of tankers through one of the world's most critical energy transit routes, with sources close to the matter indicating that vessel safety has become a primary operational concern for the companies.
The suspension underscores the vulnerability of global energy supply chains to geopolitical disruptions in strategically vital shipping lanes. As roughly one-third of seaborne traded oil passes through the Strait of Hormuz, any sustained disruption to commerce in the waterway can have ripple effects across international crude markets and refinery operations worldwide.
The move by Indian refiners adds to broader market concerns about crude oil sourcing in a heightened risk environment. Companies operating in the energy sector continue to reassess their supply chain exposure to the Persian Gulf region, balancing cost considerations against operational security in one of the most volatile trading corridors.