Rising security threats in the Strait of Hormuz have forced Indian Oil Corp (IOC) to cancel a planned lifting of Iraqi crude, as renewed hostilities in the region disrupt one of the world's most critical energy waterways. The decision, confirmed by three sources familiar with the matter, marks a significant operational shift for India's largest state-owned refiner. Main Developments IOC was preparing to load 2 million barrels of Iraqi oil from Basrah Oil Terminal onto the very large crude carrier Lila Jamnagar, with a scheduled lift around July 23. Those plans have now been scrapped due to heightened risk from attacks on vessels transiting through the Strait of Hormuz. Another state-owned refiner, Mangalore Refinery and Petrochemicals Ltd, has similarly canceled its plans to lift Iraqi crude using the Indian-flagged Aframax tanker Desh Gaurav. Neither company has publicly commented on the cancellations, and both declined to respond to requests for comment. Read also: Why Novartis Is Playing a Risky Cost-Shift Game India's shipping regulator has issued directives advising shipowners, ship managers, and recruitment firms not to deploy Indian seafarers on vessels traveling through the Strait of Hormuz. Masters of vessels have also been instructed to maintain heightened vigilance in the Persian Gulf, Strait of Hormuz, and adjoining waters, and to continuously monitor navigational warnings. Background The Strait of Hormuz, located between Iran and Oman, served as the primary transit corridor for roughly one-fifth of the world's energy supplies before the current conflict erupted. Tensions have escalated sharply since a fragile truce between Washington and Tehran collapsed in early July, reviving heavy exchanges of strikes and further disrupting shipping through the waterway. IOC, India's largest oil refiner, had previously secured alternative crude supplies, including 5 million barrels from West Africa and the Middle East, as part of its broader procurement strategy. The cancellation of Iraqi oil lifting adds to a growing list of disruptions affecting global energy flows. Why It Matters India imports roughly 85% of its crude oil, with a significant portion transiting the Strait of Hormuz. Any sustained disruption to these flows could pressure domestic fuel prices, strain refining margins, and force refiners to seek costlier alternative supplies. The cancellations also signal that the security situation in the region has deteriorated to a point where even state-backed energy companies are unwilling to risk operations. What's Next IOC and Mangalore Refinery will likely need to source replacement crude from other regions, potentially at higher costs. The duration of the Strait of Hormuz disruption remains uncertain, hinging on whether the collapsed truce can be revived or if broader diplomatic efforts emerge. Indian authorities have not indicated how long the advisory against deploying seafarers in the region will remain in effect.