Iran war: IOC to buy crude, LPG carriers as Strait of Hormuz disruptions drive freight costs

Livemint reported that Indian Oil Corporation plans to buy crude and LPG carriers and explore shipbuilding in India, as disruptions in the Strait of Hormuz drive up freight costs. The outlet said the move goes with efforts to diversify crude supplies. Moneycontrol reported that crude freight costs have hit $10 a barrel amid Iran-US tensions. Crude is unrefined oil that refineries turn into fuels; LPG is the cooking gas sold in cylinders. A carrier is a ship that moves cargo. Freight cost is what a company pays to move goods by sea. The Strait of Hormuz is a narrow sea route in West Asia through which a large share of the world's oil shipments pass. The reports do not give the number of ships Indian Oil plans to buy or the amount it will spend.

AI summary of what Livemint and Moneycontrol reported. AI can make mistakes. Read the full story on Livemint