Strait of Hormuz tension spikes: How much does India rely on it, and where else can it turn?

The Iranian parliament voted to close the strait in revenge due to strikes in its nuclear sites. But while the symbolic step has caused global concern, India’s response was measured. Years of strategic diversification, logistical insight, and emergency planning have greatly reduced India’s dependence on this volatile corridor.

Why the Strait of Hormuz is very important to India

About 2 million barrels per day-36 % of the total crude imports in India-across the Strait of Hormuz, and linking India to prominent oil countries such as Iraq, Saudi Arabia, the United Arab Emirates and Kuwait.

The Strait takes around 20 % of global oil shipments and a large share of global LNG trade (LNG), making it a vital link in the Energy Security Series in India.

Can Iran close the strait?

On June 22, the Iranian (Parliament) voted to close the Strait of Hormuz, citing the United States’ attacks on Iranian nuclear facilities.

Esmaeil Kowsari, a member of Majlis, confirmed the vote and his intention as a revenge measure.

However, the decision to implement the closure ultimately settles with the Supreme National Security Council and the Supreme Leader, Ayatollah Khounai.

Iran has the military ability to assume a closure using marine mines, missiles and rapid attack boats, but such a measure will constitute a major escalation and revenge against the risks.

Despite repeated threats, Iran has never closed the strait, partly because most of its oil exports depend on the same way.

So, how worried India?

The prevention of the strait will disrupt nearly 20 % of the world’s oil supplies, causing a sharp increase in global oil prices and widespread economic instability.

India may face temporary disturbances in crude oil supplies from Iraq, Saudi Arabia and the United Arab Emirates, which leads to an increase in prices and logistical challenges.

The main supplier of LNG in India, Qatar, and a hormonal charge for shipments to India – does not use relatively safe gas supply in the short term.

How does India play risk?

India increased the oil supplier base from 27 countries in the period 2006-2007 to 39 by 2021-22.

Russian oil is now more than 40 % of total crude imports in India – for less than 1 % before 2022.
Other main sources include the United States, Brazil, West Africa and Latin America, whose shipments do not pass through the Strait of Hermoz.

Russian oil arrives in India via the Suez Canal, the head of good hope or the Pacific Ocean. Oil travels from the United States, Brazil and West Africa also along the roads that exceed the entire hormone.

India maintains reserves covering 9-10 days of raw imports. Oil marketing companies have commercial reserves for several weeks, providing an additional pillow.

The Comprehensive Economic Partnership Agreement of the United Arab Emirates (CEPA) and the mechanism for the Rural-Jerdar Settlement for India will pay for the oil of the United Arab Emirates in a rupee, which reduces trade even in a bound scenario in the dollar.

These frameworks ensure continued access to the United Arab Emirates oil, regardless of the disturbances in Hormuz.

Closer to the house, that’s what he was doing

India is intensifying local oil and gas to reduce the adoption of import. Ethanol mix (target: 20 % by 2025) is expanded, along with investments in CNG, green hydrogen and electric cars.

In the event of a full siege, India is prepared to stop exports of petroleum products, enhance local production, and increase imports of non -hormonal methods.

Oil marketing companies are ready to change the supply and source energy lines from multiple backup channels.

What goods that India imports across the strait?

Raw

Nearly 40 % of crude oil imports in India come through the Strait of Hormuz.
This oil is revised to gasoline, diesel and other important fuel for transportation, energy and industry.

LNG

More than 50 % of liquefied natural gas imports are shipped in India – on the occasion of Qatar – across the region.

LNG is used for electricity, fertilizers and local fuel.

Other goods

The strait is also a major channel for chemicals, minerals, fertilizers and some food products imported from the Gulf.

Why does it matter?

India imports about 90 % of crude oil and half natural gas. Any continuous disorder will immediately affect the ability to withstand and provide energy costs.

Nearly $ 1.2 trillion in maritime trade passes across the Gulf every year. Closing can raise costs or delay basic commodity shipments, which affects industries, agriculture and manufacturing.

What does the center say?

Petroleum Secretary Hardip Singh Buri stated that India is “in good position” to manage any disturbance. “A large number of our supplies will not come through the Strait of Hormuz now. Our oil marketing companies have supplies for several weeks and continue to receive energy from several roads.”

If oil prices are more than $ 105/barrels, the government is ready to control consumption duties and implement other economic measures.