Hormuz and Red Sea Disruptions Threaten Indian Exporters' Profitability

A new report by CareEdge Ratings warns that disruptions to global shipping lanes at the Strait of Hormuz and Red Sea could have a significant impact on the profitability of Indian exporters and importers.

The report notes that around 40% of India's crude imports, as well as a significant share of LNG and LPG supplies, depend on the Hormuz. If Brent crude oil were to peak at $115 per barrel again in May 2026 due to disruptions in the Hormuz, it could push prices to $130-135 per barrel.

This would not only fuel inflation but also disrupt energy supplies. The report suggests that a simultaneous closure of both chokepoints could trigger a sharp surge in global energy prices, with Brent crude potentially rising to $130-135 per barrel and LNG supplies across Asia and Europe coming under significant strain.

Priti Agarwal, Senior Director at CareEdge Ratings, said: 'A simultaneous closure of the Strait of Hormuz and the Red Sea, even for a few weeks, could trigger a sharp surge in global energy prices...'