Strait of Hormuz Disrupted, India's Oil Supply

The Strait of Hormuz, a crucial global energy chokepoint, has been disrupted following military strikes by the United States and Israel on Iran, and subsequent retaliation by Iran against Israel and countries hosting US forces. This escalation has led to a halt in oil and gas shipping through the Strait, impacting global energy flows. India, which imports a significant portion of its crude oil and LNG through this waterway, faces immediate challenges including increased import costs and price volatility for Brent Crude. While India possesses strategic petroleum reserves capable of covering 40-45 days of imports, a prolonged disruption would strain its energy security and macroeconomic stability. Additionally, a drone attack on Qatar's Ras Laffan LNG Complex has halted production, further impacting global gas markets. Analysts suggest India could diversify supplies from Russia, West Africa, Latin America, and the United States, and implement policy interventions to prioritize domestic energy security by curbing refined product exports.