MRPL Avoids Red Sea and Strait of Hormuz Routes in First-Ever Spot Crude Tender Amid Rising Geopolitical Tensions

State-owned Mangalore Refinery and Petrochemicals Limited (MRPL) has, for the first time, instructed crude oil suppliers to avoid shipping routes through both the Red Sea and the Strait of Hormuz in a spot tender, highlighting growing concerns over geopolitical instability and risks to global energy supply chains.

The directive was included in a spot tender issued on Monday, under which MRPL is seeking to procure up to 1 million barrels of crude oil for delivery between August 25 and September 6.

In a significant departure from its usual procurement terms, MRPL has specified that the loading or transit of crude cargoes should not pass through the Red Sea or the Strait of Hormuz, two of the world’s most strategically important maritime oil routes.

The move comes amid escalating tensions in the Middle East. Shipping activity in the Red Sea, particularly near Yemen, has faced renewed disruptions following attacks by Iran-backed Houthi forces. The security situation has heightened concerns over the safety of commercial vessels and has added pressure on global oil logistics.

At the same time, the broader U.S.-Iran confrontation continues to cast uncertainty over the Strait of Hormuz, through which nearly a fifth of the world’s oil supply typically passes. Any disruption in the narrow waterway has the potential to impact global crude supplies and freight costs.

MRPL’s latest tender reflects the increasing caution being exercised by refiners as they seek to safeguard supply chains against geopolitical risks. By avoiding the two volatile maritime corridors, the company appears to be prioritizing supply security even if it results in longer shipping routes or higher transportation costs.

The development underscores how geopolitical tensions are increasingly influencing procurement strategies of Indian refiners, particularly those dependent on imported crude oil.