India says that the recent closing of the Strait of Hormuz has not disrupted 60% of its crude oil imports since it has many different ways to get oil and large stocks. As tensions rise in the Middle East, government officials stress the need of energy security.
Strait Closure Background
The Strait of Hormuz, a crucial chokepoint between the Persian Gulf and the Gulf of Oman, carries roughly 20 percent of worldwide oil trade. Iran had shut the strait in response to heightened hostilities with the US and Israel, including after Supreme Leader Ayatollah Ali Khamenei was killed, threatening ships with attack. That has halted tanker movements and driven up global oil prices.
India’s Import Profile
As the world’s third-largest oil importer, India imports more than 88 percent of its crude supply from abroad, and around 40 percent usually transits through Hormuz from suppliers including Iraq, Saudi Arabia, the United Arab Emirates and Kuwait. Sixty percent of that latter amount comes in through other channels — including those from Russia, West Africa, Latin America and the US. Imports of LPG and LNG are more vulnerable, as 80–85% depend on shipments coming from the Gulf via the strait.
Stockpiles and Short-Term Buffer
India has 3-4 weeks of stockpiles of crude oil and fuels such as petrol, diesel and in-transit stocks that offer a cushion of 25-45 days depending on consumption. Officials say no immediate shortages or need for fuel rationing expected, with close monitoring by the Petroleum Ministry Retail fuel prices are stable for the time being.
Strategic Responses
India has been shifting to Russian crudes [despite] a US trade deal limiting such purchases recently with three sanctioned tankers (Odune, Matari and Indri) diverting more than 1.4 million barrels of oil across multiple ports such as Paradip and Vadinar. Russia has indicated it is prepared to deliver more. Discussions are ongoing with traders such as Vitol and ADNOC for extra volumes.
Global and Economic Implications
Long-term closure could lead to higher fuel costs and put pressure on the rupee, but the dangers are limited in the short term. India is looking to make emergency imports from Russia to make up for problems, putting its own interests ahead of international constraints. Experts say that there are still weaknesses, but attempts to diversify since 2022 have made the system more resilient.