Discounts on Russian Urals crude oil delivered to India have dropped to between $1 and $2 a barrel against the dated Brent benchmark this week because of supply concerns, three trade sources said. Stronger demand from Indian refiners was linked to renewed hostilities in the Iran war and disruptions to shipping through the Strait of Hormuz. The sharp rebound for Russia's flagship grade marks a significant change from early July, when Urals cargoes were trading at discounts of more than $10 a barrel in India, pressured by abundant Middle Eastern supplies and weaker buying interest from China.