India's Oil Supplies Threatened by Maritime Disruptions in Red Sea and Persian Gulf
India's oil imports are facing significant challenges due to disruptions in sea lanes, particularly in the Red Sea and Persian Gulf. The country relies heavily on crude oil from West Asia and Russia, with around four-fifths of its supplies coming from these regions.
The Hormuz Strait, controlled by Iran, is a critical chokepoint for oil shipments. India may need to pursue diplomacy with Iran to allow oil shipments through the strait, as Iraq and the UAE cannot deliver oil through the Red Sea. Russian shipments, however, are not affected by the Houthi control over the Bab el-Mandeb Strait.
The disruption to maritime supply routes is adding to India's energy expenses, with longer shipping routes and increased insurance costs contributing to the elevated cost of crude oil. The stalemate over reopening the Hormuz Strait and escalating conflict in the Red Sea are pushing back normalisation of oil tanker traffic, affecting timelines for restocking oil reserves.
The situation is further complicated by US tariff actions against Russian oil buyers, including India. This has revived India's refinery exports to Europe, which move through the Red Sea unless security issues force a detour around Africa.