Saudi Arabia, Russia Offer Oil Supply Continuity for India Amid Iran's Hormuz Uncertainty

For India, which reportedly holds crude reserves for 90 days, Saudi Arabia's ability to reroute crude exports via the Red Sea offers a layer of supply continuity amid the Strait of Hormuz uncertainty, according to a report on Monday.

- AGENCIES

While India sources 18-20 per cent of its crude from Saudi Arabia, the Petroline-Yanbu corridor ensures that a significant portion of these volumes could still reach Indian refiners even if the Hormuz route is disrupted.

"Although some logistical constraints and higher freight costs may persist, Saudi's diversified export infrastructure, combined with India's flexible sourcing strategy, reduces the likelihood of a sharp supply shortfall from this key partner," said the report from Yes Securities.

With Iran's Parliament approving a potential closure of the Strait of Hormuz following US strikes on its nuclear sites, energy markets face rising disruption risk at the world's most critical oil artery.