India Braces for Energy Crisis as Strait of Hormuz Blockade Threatens Global Supplies

The Strait of Hormuz, which connects the Persian Gulf to the Arabian Sea, has been blockaded by Iran's attacks on oil tankers and merchant ships since February. This has severely disrupted energy supplies, with over a billion barrels of oil transported through the Strait in the past two months alone.

India is particularly vulnerable to this crisis, as it imports 80% of its oil from abroad. The recent entry of Ansar Allah (Houthis) from Yemen into the conflict has further complicated matters, damaging the East-West pipeline and shutting down transport. This has led to a sharp increase in oil prices, with crude reaching $106 per barrel.

The US has enacted a law that, if implemented, will stop the flow of Russian oil and gas into global energy markets. Russia produces 10 million barrels of oil per day and exports around 4.5-5 million barrels daily. If this supply is disrupted, energy costs may rise dramatically.

India must now take immediate action to overcome energy shortages and American tariffs. The government plans to diversify energy supplies and implement demand-side management measures. In the long term, India should aim to shift towards electric vehicles, which would not only reduce energy imports but also alleviate trade deficits.