October 24, 2026: Supply disruptions from the Middle East, as the Iran war enters its eighth month, have pushed Asian refiners to buy spot Middle Eastern oil on a delivered basis.

Attacks on vessels transiting the Strait of Hormuz have also tightened shipping availability and driven freight rates close to record highs. 

Freight rates doubled in July to September from the previous quarter, HPCL finance chief Srividya Venkataraman said.

The cost of shipping crude on a Suezmax tanker ⁠has risen to about $9 per barrel from $3 to $4 in the June quarter, she said.

"The impact on landed prices might not be as much as you guys think from outside because the producers of oil are also stuck," Kaushal said, adding that returns to ⁠producers with stranded cargoes were much lower than publicly reported.

He said delivered cargoes previously accounted for about half of HPCL's crude imports. The company is increasingly opting for delivered ⁠cargoes to avoid exposing its own vessels to attacks and other risks linked to the regional conflict

(Source: Reuters)