US-Iran Conflict and Ukraine Strikes Disrupt Indian Oil Supplies

Renewed fighting between the United States and Iran in the Middle East has disrupted oil shipments to India, forcing refiners to seek more expensive alternative cargoes. The conflict has centered on the Strait of Hormuz, a critical shipping chokepoint, leading to delivery failures and a surge in purchase tenders.

Bharat Petroleum Corp., a state-run refiner, missed four scheduled cargoes in August originating from Saudi Arabia, Kuwait, and the United Arab Emirates. Indian Oil Corp. also reported changes to its delivery schedules as a result of the instability.

Simultaneously, India's oil supplies from Russia have faced increased pressure. Ukrainian attacks on Russian energy infrastructure have driven up costs, causing Urals crude to shift from a discount to a premium of approximately $2 per barrel.