The move follows a string of attacks on vessels transiting the Strait of Hormuz, which have tightened tanker availability and pushed freight rates to record highs.
For FY2027‑28, IOC had earmarked roughly 47% of its crude imports from Gulf producers under free‑on‑board agreements, but the war’s eighth month of turbulence has forced several Asian refiners to suspend contracts and shift to spot purchases.
In response, some Gulf producers are offering crude on a delivered basis, shouldering part of the freight burden, while IOC has reportedly bought Iraqi crude at discounts to the Dubai benchmark.
The shipping crisis has also delayed IOC’s plan to acquire stakes in two very‑large gas carriers; the cost of a 10‑year‑old vessel has doubled to about $150 million since the tender was floated.
Brent futures hovered above $110 a barrel amid renewed tanker‑safety concerns, reinforcing the urgency for Indian refiners to diversify their supply chains.
IOC now intends to renegotiate existing contracts and explore alternative sources while keeping its vessel‑expansion bid on hold until freight rates stabilize.