Iraq’s oil exports to India fall as New Delhi diversifies import sources

Storage tanks are seen at an Indian Oil refinery in Mumbai, India, on September 12, 2025. Photo: Indranil Aditya/NurPhoto via AFP Baghdad (IraqiNews.com) – Iraqi oil exports to India fell in the first half of 2026, as Indian refineries diversified their crude import sources to minimize the geopolitical risks associated with shipping via the Straits of Hormuz. According to officials at Indian refining companies and the Indian Ministry of Petroleum, the goal of this measure is to improve supply security. The drop in Iraqi supplies to India comes at a time when the global oil market is under increased pressure due to security worries along critical maritime routes. This pressure is causing consumers in Asia to split their purchases among many producing countries. Iraqi oil remains a vital resource for India due to supply security and the high quality of Basra crude. Indian refiners confirmed they have secured their crude oil requirements until the end of September and have begun arranging purchases for the fourth quarter of the year, despite persistent concerns about the impact of any interruptions to shipping routes on global supply chains. Meanwhile, Russia remained India’s top crude oil supplier in the first half of the year, while imports from the UAE and Brazil increased. India’s purchases from Iraq and the United States fell as New Delhi attempted to diversify its supply sources and reduce the risks associated with reliance on a single source. Indian refiners have warned that increased shipping risks and higher insurance costs, along with declining discounts on Russian oil, are affecting profit margins. Experts anticipate that continuing instability in the Middle East will raise oil prices and pose new hurdles for Asian oil-importing countries.