The ongoing tensions between the United States and Iran have raised concerns about the potential closure of the Strait of Hormuz, a critical chokepoint for global oil transportation. This strategic waterway is vital for India, which imports approximately 2 million barrels per day (bpd) of oil through it. Despite the looming threat, India remains confident in its energy security due to its diversified oil import strategy.

India has proactively expanded its oil sources beyond the Middle East, tapping into supplies from Russia, the United States, and Brazil. This diversification strategy is designed to mitigate risks associated with geopolitical tensions that could disrupt traditional supply routes. As a result, even if the Strait of Hormuz were to be temporarily closed, India’s oil imports would not face immediate jeopardy.

Furthermore, India’s gas supplies are expected to remain stable, as they are not directly affected by the situation in the Strait of Hormuz. However, in the short term, global oil prices could experience a spike, potentially reaching $80 per barrel due to market uncertainties and supply disruptions.

To further safeguard against potential supply shocks, India has built up strategic petroleum reserves. These reserves act as a buffer, providing a temporary cushion against any immediate shortages that might arise from geopolitical conflicts or natural disasters affecting oil supply chains.

The Indian government continues to monitor the situation closely and is prepared to implement contingency plans if necessary. By maintaining robust strategic reserves and fostering strong relationships with alternative suppliers, India aims to ensure uninterrupted energy supplies despite global market volatility.

Overall, while the closure of the Strait of Hormuz could pose challenges for global oil markets, India’s comprehensive energy strategy positions it well to navigate such disruptions with minimal impact on its economy.