Iran has clarified that its closure of the Strait of Hormuz applies only to vessels from the US, Israel, Europe and their allies — a development that brings relief to India. The narrow 33-km waterway between Iran and Oman, through which nearly 40% of India’s crude imports pass, has been closed since March 1 after joint strikes by the US and Israel against Iran. More than a fifth of global crude and gas supplies transit the Hormuz, so the shutdown prompted international concern.
Russia and the United States have both reacted to the ensuing energy stress. Russian Ambassador to India Denis Alipov said Russia remains open to supplying crude oil to India. US President Donald Trump said the US Development Finance Corporation would offer insurance at a “very reasonable price” to shipping firms operating in the region to help maintain energy flows, and indicated the US Navy would protect vessels in the Middle East if required.
Indian officials say the country is in a relatively comfortable position on energy security. Sources report India is currently taking almost 1 million barrels per day of Russian crude, with additional shipments planned, and that strategic and commercial stocks are at comfortable levels and are being replenished daily. There are reportedly no shortages of LPG or LNG, and no immediate global crude shortage has been identified.
New supplier contacts are being pursued. Australia and Canada have offered gas supplies, and India recently signed a fresh contract involving the UAE and the US. India’s gas imports run about 195 million metric standard cubic metres per day (MMSCMD), of which Qatar supplies roughly 60 MMSCMD; India is exploring alternate gas sources after Qatar curbed production citing strike fears. Negotiations are also underway with major oil producers and trading houses to secure crude and LPG cargoes.
India has engaged the International Energy Agency and OPEC in discussions. On Monday, eight OPEC+ members — Saudi Arabia, Russia, Iraq, the UAE, Kuwait, Kazakhstan, Algeria and Oman — announced plans to increase production beginning April 1 to help stabilize markets.
Image for representation only.
