New Delhi: The escalating West Asia conflict has sent shockwaves through global energy markets after Iran reportedly shut down the strategically vital Strait of Hormuz. The narrow maritime corridor, through which a substantial share of the world’s oil shipments pass, has seen shipping activity stall amid threats of attacks on foreign vessels. For India — one of the world’s largest crude importers — the development poses serious energy security concerns, as nearly 2.5 to 2.7 million barrels of oil per day destined for the country typically transit through the strait.
With uncertainty mounting, the Indian government is said to be preparing contingency measures to safeguard domestic fuel supplies. These may include curbs on petrol and diesel exports and possible rationing of LPG if the crisis deepens. Reports indicate that India’s current strategic oil reserves can meet only about two weeks of demand, prompting urgent efforts to secure alternative supply lines. In a significant shift, New Delhi is actively considering ramping up crude imports from Russia despite earlier indications of scaling back purchases. Diversifying sourcing and strengthening supply chains are now seen as critical steps to shield India’s economy from the fallout of prolonged geopolitical turbulence.
