India's state oil refiners are reducing their dependence on Middle East crude following supply disruptions linked to the Iran war, turning to alternative sources including spot-market purchases, according to people familiar with the matter.

The shift reflects growing concerns about energy security after geopolitical tensions in the Persian Gulf region disrupted global oil flows. State refiners are diversifying their supply chains to mitigate risks from future supply shocks in the Middle East.

Spot-market purchases offer flexibility to source oil from alternative producers when Middle East supplies become volatile or expensive. This strategy allows refiners to respond quickly to changing geopolitical conditions without long-term contractual commitments.

The move signals India's recognition that energy security requires reducing concentration risk in any single region. By diversifying suppliers, the country aims to protect its economy from external supply shocks that can ripple through global markets.