Two-fifths of India's crude imports face threat

IRAN'S THREAT OF closing down the Strait of Hormuz has led to concerns over disruption of oil flows globally. India, too, could face severe oil supply challenges as the country is dependent on the route for most of its crude supplies emerging from West Asia.

- ARUNIMA BHARADWAJ

Nearly two-fifths of India's crude supply remains exposed to risks from a potential Hormuz disruption. "Strait of Hormuz is a major oil transit point accounting for more than 13 million bpd of oil and petroleum products trade. A closure could be catastrophic for the global oil markets, including for India, as the country is dependent on the strait for the majority of its Middle-Eastern energy flows," Pulkit Agarwal, head of India content, S&P Global Commodity Insights, told FE.

In 2024, oil flow through the strait averaged 20 million barrels per day, or the equivalent of about 20% of global petroleum liquids consumption, according to the US Energy Information Administration (EIA).