Around 2.5 Million Barrels of India's Daily Oil Imports Transit the Strait of Hormuz

The escalating conflict involving Iran, the United States and Israel has sharply disrupted oil and gas flows through the Strait of Hormuz, raising fresh concerns for global energy markets and India’s import security. Reports indicate that many trading houses, insurers and shipping companies have suspended movements through the crucial maritime corridor after Tehran signalled the strait’s closure following retaliatory actions. Although Iran has not issued an official declaration, hundreds of oil tankers are said to be anchored in open Gulf waters, underscoring the scale of market anxiety.

The Strait of Hormuz is widely regarded as the world’s most critical energy chokepoint, linking the Persian Gulf with the Gulf of Oman and the Arabian Sea. Roughly one-fifth of global liquid petroleum consumption and a significant share of liquefied natural gas trade pass through the narrow waterway. Around 15 million barrels of crude transit the route daily, and even with existing bypass pipelines in Gulf countries, experts estimate that about nine million barrels per day of supply would remain structurally exposed if the passage were fully blocked.

India, the world’s third-largest crude consumer, faces notable exposure because nearly half of its oil imports — about 2.5 to 2.7 million barrels per day — move through the strait from key suppliers, including Iraq, Saudi Arabia, the UAE and Kuwait. With import dependence exceeding 88 per cent and heavy reliance on West Asian energy, any prolonged disruption could tighten supply conditions. However, analysts believe India is relatively well positioned to manage short-term shocks due to diversified sourcing and existing inventories.

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Industry estimates suggest Indian refiners currently hold crude inventories exceeding 10 days, along with roughly a week of fuel stocks. In the event of supply disruption, the government and refiners could draw on strategic petroleum reserves, increase spot purchases from non-Hormuz routes, and expand procurement from alternative suppliers such as Russia, the United States, West Africa and Latin America. The availability of Russian cargoes in the Indian Ocean region is viewed as an additional buffer that could be tapped quickly if required.

According to commodity analytics firm Kpler, India’s more serious vulnerability lies in liquefied petroleum gas and liquefied natural gas. The country imports about 80–85 per cent of its LPG requirements, largely from Gulf producers, with most shipments transiting Hormuz. Unlike crude oil, India lacks comparable strategic reserves for LPG, leaving thinner structural buffers. Similarly, nearly 60 per cent of India’s LNG imports pass through the same route, and spot cargo availability in these markets is relatively limited.

Experts say the overall impact will depend heavily on how long the disruption lasts. While India’s diversified crude sourcing strategy reduces the risk of an immediate supply crisis, a prolonged closure could push up global energy prices and strain LPG and LNG availability. For now, policymakers and refiners are closely monitoring the situation, preparing contingency sourcing plans and hoping the geopolitical tensions ease before the disruption evolves into a sustained energy shock.

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