Mangalore Refinery and Petrochemicals Ltd (MRPL) has cancelled a vessel charter intended to load crude oil from Iraq, according to shipping sources.
The decision affects the Aframax tanker Jasmin Joy, which had been booked to pick up cargo from Iraq's Basrah terminal.
This marks a reversal of the refiner's recent move to secure its first-ever cargo from the country, a step that was part of a broader effort by Indian state-owned refiners to diversify their supply base.
The cancellation highlights the fragility of Middle Eastern supply chains amid heightened tensions in the Strait of Hormuz.
While sources did not explicitly confirm that geopolitical risk was the sole driver, the timing suggests that shipping insurance costs and route security concerns are forcing refiners to reassess near-term logistics.
For traders, this signals that even established procurement plans can be scrapped quickly when regional instability escalates, potentially tightening spot availability for Indian refiners in the short term.