Indian Oil Corporation cancels Iraq oil lifting amid attacks, sources say

Indian Oil Corporation has cancelled the lifting of Iraqi oil from Basrah Oil Terminal due to increased risk and attacks on some vessels transiting through the Strait of Hormuz, three sources familiar with the matter said.

State-run IOC was preparing to lift 2 million barrels of Iraqi oil in the very large crude carrier Lila Jamnagar around July 23, 2026.

Another cancellation

Another state refiner, Mangalore Refinery and Petrochemicals Ltd., also cancelled plans to lift oil from Iraq in the Indian-flagged Aframax tanker Desh Gaurav, they said.

The two Indian refiners did not immediately respond to a Reuters request for comment.

India has advised shipowners, ship managers and recruitment companies not to deploy the country’s seafarers on vessels undertaking trips through the Strait of Hormuz following the resumption of fighting in the region. 

The shipping regulator has also directed masters of vessels to ensure that they are sufficiently vigilant about the security situation in the Persian Gulf, the Strait of Hormuz and adjoining waters, and called for continuous monitoring of navigational warnings.

The Strait of Hormuz between Iran and Oman was the main transit route before the conflict for around a fifth of global energy supplies.

Tensions have escalated since a fragile truce between Washington and Tehran collapsed in early July, reviving heavy exchanges of strikes and further disrupting shipping through the waterway.