Poonam Sharma
The Iran-Israel war is escalating tensions in the Strait of Hormuz, a vital oil route for India. With 40% of India’s crude oil passing through this corridor, disruptions could severely impact national energy security. Here’s how India is preparing.
Keywords: Iran-Israel war, India oil crisis, Strait of Hormuz, oil supply chain, India energy security, crude oil imports, West Asia conflict, global oil prices, alternative oil routes, Indian strategic response
As the conflict between Iran and Israel intensifies, the shockwaves are being felt far beyond the Middle East. One of the most concerning ripple effects is being experienced in India, a country heavily dependent on crude oil imports from the Persian Gulf. With escalating hostilities threatening to disrupt one of the world’s most critical maritime oil arteries—the Strait of Hormuz—India is gearing up for a potential oil crisis.
Why This Conflict Matters to India
India imports nearly 85% of its crude oil, and a significant portion of it passes through the Strait of Hormuz, a narrow but crucial waterway that connects the Persian Gulf with the Arabian Sea. This maritime passage is not just a strategic chokepoint—it is a lifeline for global energy markets.
Every day, approximately 20 million barrels of oil—almost one-fifth of the world’s total oil consumption—flow through this narrow corridor. For India, this route is vital to secure oil from key suppliers such as Saudi Arabia, Iraq, Kuwait, and the UAE. Unfortunately, this strait falls under the geostrategic sphere of Iran, and any military escalation in the region threatens to choke this supply chain.
What Is the Strait of Hormuz?
The Strait of Hormuz is only about 21 miles wide at its narrowest point, yet it handles more than 40% of India’s oil imports. It separates Iran from the Oman coast and is the only sea passage from the Persian Gulf to the open ocean. Given Iran’s military influence in this region, the strait becomes a potential weapon during geopolitical conflicts.
If Iran decides to block or disrupt shipping through the strait—either directly or via proxies—it could lead to severe shortages and a dramatic spike in global oil prices. For India, that would translate to fuel inflation, import cost surges, and energy insecurity.
India’s Strategic Response to the Crisis
India, well aware of the geopolitical volatility in West Asia, has been preparing contingency plans to mitigate the risks. In recent days, Indian officials have reportedly begun exploring alternate oil supply routes and strategic reserves to buffer against short-term disruptions.
1. Diversifying Oil Sources
India has increased its focus on African nations like Nigeria and Angola, as well as Latin American suppliers such as Brazil and Venezuela. While oil from these regions is costlier and logistically complex to transport, it provides a fallback in case Gulf routes are blocked.
2. Tapping into Strategic Petroleum Reserves (SPRs)
India currently maintains about 5.33 million metric tonnes of strategic oil reserves, located at key underground facilities in Visakhapatnam, Mangalore, and Padur. These reserves can cover 9 to 10 days of national oil demand. In emergencies, they serve as a crucial buffer.
3. Long-Term Energy Strategy
The crisis is also pushing India to accelerate its long-term transition toward renewable energy. With an ambitious target of 500 GW of renewable energy capacity by 2030, India aims to reduce its dependence on volatile global oil markets.
Global Consequences and Oil Price Shocks
Markets have already begun reacting. Brent crude prices surged above $90 per barrel in recent days, and analysts warn that a prolonged conflict could push prices past $100, causing worldwide inflationary pressure. For developing economies like India, such increases directly affect transportation costs, electricity prices, and commodity inflation.
Geopolitics and the Risk of Escalation
Iran has, in the past, threatened to close the Strait of Hormuz during tensions with the U.S. The Israel conflict now provides another flashpoint. If Iran follows through, or if Israel retaliates militarily near Gulf shipping lanes, it could trigger a regional war involving other Gulf states and U.S. naval forces stationed in the region.
India, while maintaining a neutral stance, is walking a tightrope. On one side are its strong energy and trade ties with Gulf countries, and on the other, its diplomatic engagement with Israel and the United States.
What Lies Ahead?
If the Iran-Israel war escalates into a prolonged regional conflict, oil shipping lanes could be blocked, prices could soar, and countries like India would face tough choices. India’s energy security strategy is now being stress-tested in real-time. The government is not only keeping close tabs on developments but is also engaging diplomatically with regional players to ensure stability.
In an interconnected world, regional conflicts have global consequences. For India, the Strait of Hormuz isn’t just a line on the map—it’s a critical artery of national survival. As missiles fly over West Asia, India is quietly but urgently recalibrating its energy strategy, knowing that its economic future may hang on what happens in those narrow, contested waters.
