June 19, 2025 | Energy & Diplomacy Desk – www.thequickupdate.com
As tensions flare in West Asia, Iran has hinted at the possible closure of the Strait of Hormuz, a strategic oil transit chokepoint that handles nearly 30% of global crude shipments. This development, triggered by intensifying conflict between Iran, Israel, and the United States, could have serious implications for global oil markets — and potentially impact India’s energy security.
Why the Strait of Hormuz Matters
Located between Iran and its Gulf Arab neighbors, the Strait of Hormuz is one of the world’s most critical maritime routes. It facilitates the daily movement of around 20% of the world’s oil supply, including a substantial portion of crude exports from Iraq, Saudi Arabia, the UAE, and Kuwait.
India sources 40% of its oil from the Middle East, much of which passes through this strait. A blockade could therefore disrupt oil inflows and stir price volatility.
🇮🇳 India’s Oil Supply: How Vulnerable Is It?
Despite heavy Middle East dependence, experts suggest that the impact on India may be cushioned due to recent diversification in its oil sourcing:
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India has increased imports from Russia, which routes shipments via the Suez Canal, the Cape of Good Hope, or the Pacific Ocean, bypassing the Hormuz Strait entirely.
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Qatar, India’s top LNG supplier, also does not rely on Hormuz, limiting gas disruption risk.
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Other LNG sources like Australia, the US, and Russia ensure additional supply resilience.
However, imports from Iraq and Saudi Arabia—two of India’s largest crude suppliers—would be affected, according to Dr. Laxman Kumar Behera, Associate Professor at JNU’s Centre for National Security Studies.
“A full closure of the Strait of Hormuz would temporarily affect crude oil inflow from these nations, but India’s diversified portfolio and strategic reserves could offer a buffer,” he said.
Global Oil Markets May See Shockwaves
According to the International Energy Agency (IEA), even a temporary closure of the Strait could send oil markets into a spiral. With nearly one-third of global LNG and 30% of oil passing through it, re-routing costs could surge, affecting currencies and inflation globally.
The IEA further warned:
“Oil supply security remains high on the international energy policy agenda.”
Will Iran Actually Shut the Strait?
While Iranian foreign minister Seyed Abbas Araghchi hinted at “multiple options,” and Iran’s diplomatic mission confirmed that closure is on the table, most analysts agree that a long-term shutdown is unlikely.
Why?
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Iran itself exports oil through the Strait, with China receiving nearly 47% of Iran’s seaborne crude.
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A full-scale closure could backfire economically and risk military retaliation from Western powers.
That said, short-term disruption or naval tensions remain a real possibility.
FAQs: India & the Strait of Hormuz Tensions
Q1: What is the Strait of Hormuz and why is it important?
The Strait of Hormuz is a narrow waterway between Iran and Oman, through which nearly 20% of global oil and 30% of LNG is transported. It’s crucial for energy trade from the Middle East.
Q2: How much of India’s oil passes through the Strait of Hormuz?
Around 40% of India’s oil imports come from countries like Iraq, Saudi Arabia, and Kuwait that export via the Strait.
Q3: Will India’s oil supply be hit if Iran shuts the Strait?
Some impact is likely, especially from Iraq and Saudi Arabia. But India’s increasing reliance on Russian oil and LNG from non-Gulf nations helps limit the risk.
Q4: Has Iran officially announced a closure of the Strait?
No. Iranian officials have hinted at closure, but no formal action has been taken yet.
Q5: What would be the global consequences if the Strait closes?
Oil prices would spike, shipping would be disrupted, and geopolitical tensions could escalate, potentially involving international military forces.
