RoydadNaft –  Indian Oil Corporation has bought 2 million barrels of Iraqi crude at a discount of about $28 a barrel to the Dubai benchmark for October 2026 delivery. The deal was done on a free-on-board (FOB) basis.

According to Roydad Naft, citing RT, Reuters reported the purchase on the word of two trade sources. They said Indian Oil, the country’s largest refiner, bought Basrah Medium and Basrah Heavy at that steep discount.

The state refining company purchased the cargo from trading house Mercuria, the sources said.

IOC had earlier issued a tender seeking Iraqi crude for delivery between October 21 and 31, 2026.

The deal comes as shipments through the Strait of Hormuz are disrupted. Before the war with Iran in late February 2026, about 20% of global oil and gas supply moved through the strait.