/pratidin/media/agency_attachments/2025/10/30/2025-10-30t081618549z-pt-new-glm-1-2025-10-30-13-46-18.png)
/pratidin/media/member_avatars/2025/04/25/2025-04-25t111025911z-7.png )
Follow Us/pratidin/media/media_files/2026/03/04/new-pt-web-oil-2026-03-04-20-08-10.jpg)
When war breaks out between two nations, its consequences rarely remain confined to their borders. The ongoing conflict involving the United States, Israel, and Iran is no exception. The ripple effects of the escalating hostilities are being felt across the globe, and concerns are mounting that India, too, could face significant economic and energy-related repercussions.
According to reports, tensions intensified after US-Israeli strikes reportedly killed Iran’s Supreme Leader, Ayatollah Ali Khamenei. Since then, retaliatory attacks between the two sides have continued unabated. Amid the escalating confrontation, Iran has announced that it may shut down the Strait of Hormuz, a move that could have far-reaching global implications.
The Strait of Hormuz is one of the world’s most critical maritime oil transit chokepoints. Nearly 20 per cent of the world’s crude oil supply passes through this narrow passage. The route is equally crucial for India, which depends heavily on oil and gas imports routed through the strait.
National media reports indicate that India currently maintains adequate reserves of crude oil and gas, sufficient to meet domestic demand for approximately 25 days. However, concerns would intensify if the conflict prolongs and supply disruptions persist. Once existing reserves are depleted, India would require additional imports, potentially at significantly higher prices.
India’s Strategic Oil Reserves
According to experts quoted in The Indian Express, India has created strategic petroleum reserves to prepare for global crises or war-like situations. Underground storage facilities located at Visakhapatnam, Mangaluru, and Padur have a combined storage capacity of approximately 5.33 million metric tonnes of crude oil. These reserves can meet the country’s oil requirements for around 10 days.
In addition, Petroleum Minister Hardeep Singh Puri stated in February that if strategic reserves, refinery stocks, and crude stored at ports are combined, India has sufficient supplies to last up to 74 days. This buffer is intended to help the country withstand temporary global supply disruptions.
15 Million Barrels Pass Daily Through Hormuz
Experts estimate that approximately 15 million barrels of crude oil pass through the Strait of Hormuz every day. Any closure of this route would immediately halt tanker movement, disrupting global supply chains.
Crude oil prices have already surged to around $83 per barrel amid rising tensions. This increase could translate into higher retail fuel prices across India. In Guwahati, petrol is currently priced at ₹98.19 per litre, while diesel costs ₹89.42 per litre. Analysts warn that fuel prices may rise further across states if global crude prices continue to climb.
Why the Strait of Hormuz Is Vital for India
Nearly 50 per cent of India’s crude oil imports, approximately 2.5 to 2.7 million barrels per day, transit through the Strait of Hormuz. Major suppliers, including Iraq, Saudi Arabia, the UAE, and Kuwait, ship oil to India via this route.
Beyond crude oil, liquefied petroleum gas (LPG) and liquefied natural gas (LNG) imports also depend significantly on this passage. A prolonged closure would severely affect supply flows, potentially triggering shortages and price hikes.
According to energy analytics firm Kpler, the impact on natural gas supplies could be even more severe than on crude oil. India imports nearly 80–85 per cent of its LPG requirements, with a substantial portion routed through Hormuz. Additionally, around 60 per cent of India’s LNG demand is met through imports.