Strait Of Hormuz Closure Cuts Oil Flow To India, China; Alternative Pipelines Insufficient

The ongoing conflict in the Middle East, particularly the US and Israel’s attacks on Iran, has disrupted crude oil flows through the Strait of Hormuz, creating serious supply pressures for Asia’s energy markets. An estimated 20 million barrels of crude pass through the strait daily, roughly a fifth of global seaborne oil, with nearly 8.2 million barrels destined for India and China, two of the world’s largest energy consumers.

India typically imports around 12–15 per cent of Hormuz-shipped oil, which accounted for about 40 per cent of its crude imports before the crisis. However, the Petroleum Ministry said the country has diversified its sources and now relies on 70 per cent non-Hormuz supplies. China remains the dominant buyer of Hormuz oil at roughly 38 per cent, while South Korea and Japan account for 12 and 11 per cent respectively. Collectively, these four Asian economies consume 76 per cent of Hormuz shipments, underscoring the strait’s vital role in global energy security.

Alternative overland routes exist, but they are far from sufficient. Saudi Arabia’s East-West “Petroline” pipeline, stretching nearly 750 km from eastern oil fields to Red Sea export terminals, can transport up to seven million barrels per day — only about 24 per cent of Hormuz’s daily flow. Similarly, the UAE’s Habshan-Fujairah pipeline carries 1.2–1.5 million barrels per day, roughly 7 per cent of the strait’s output. Operations on both pipelines are vulnerable to strikes, as seen when Fujairah Port suspended loading on March 16 following a drone attack.

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Even combining Saudi and UAE pipelines, alternative routes can replace no more than 29 per cent of Hormuz’s crude shipments. Other overland corridors, such as routes through Iraq, carry even smaller volumes. This limited capacity highlights the fragile infrastructure supporting Middle East oil exports and the strategic leverage Iran gains by threatening the Hormuz chokepoint.

The disruption has already pushed oil prices upward, with Brent crude surpassing the $100-per-barrel mark twice this month. With limited alternatives, energy-hungry Asian economies, including India, are forced to rely more heavily on non-Hormuz supplies, while global markets remain exposed to volatility.

Experts warn that unless tensions ease, the partial shutdown of the Strait of Hormuz could continue to strain supply chains, exacerbate price volatility, and reinforce the strategic importance of pipelines and diversified sourcing for Asia’s major crude importers.

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