MRPL Cancels Iraqi Oil Charter After Hormuz Risk Spikes
Mangalore Refinery and Petrochemicals Limited cancelled a crude oil tanker charter from Iraq after maritime authorities raised the threat level in the Strait of Hormuz to severe.
Indian state refiners briefly resumed crude oil imports from Iraq following the tentative reopening of the Strait of Hormuz, a strategic waterway handling 20% of global oil and gas supplies. Mangalore Refinery and Petrochemicals Limited (MRPL) initially led this return by chartering the Aframax tanker Jasmin Joy to load oil from the Basrah terminal on July 19-20.
This initial move followed weeks of logistics struggles for Indian firms. In late June, Indian Oil Corporation received no bids for a tender to charter three tankers for Persian Gulf shipments due to high freight costs and transit uncertainties. During this period, TotalEnergies offered millions of barrels of Basrah Medium and Heavy crudes to buyers in Taiwan, South Korea, and China.
On July 8, MRPL cancelled the Jasmin Joy charter, citing "technical reasons". However, shipping sources linked the cancellation to heightened tensions in the Strait of Hormuz, where maritime authorities upgraded the threat risk for transiting vessels to "severe" following a series of attacks on ships. MRPL is currently seeking a replacement vessel.
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