India’s biggest refiner plans to cut its purchase of Middle East oil in annual contracts, as the U.S. and Israel war with the Islamic Republic has made the region’s supply less reliable.

Reuters, citing a knowledgeable source, wrote that the Indian oil company will implement this reduction in the 2027 and 2028 financial years.

The company was expected to supply, in the financial year ending in March 2027, about 47% of its crude oil imports from Middle East producers under FOB annual contracts.

Indian refiners traditionally took more than half of their annual crude oil—especially heavy and high-sulfur grades—because of the region’s proximity.

As the war entered its eighth month, disruptions to supplies to Asian refiners have prompted them to halt purchases under some annual contracts. Attacks on ships in the Strait of Hormuz have also reduced the availability of vessels, pushing freight rates close to record levels.