India’s Energy Diplomacy During the West Asia Crisis and Hormuz Blockade

The ongoing West Asia crisis, which has included blockades on shipping through the Strait of Hormuz, has tested India’s energy security to an unusual degree. The Strait, only about 21 nautical miles wide at its narrowest point and lying between Iran and the Musandam Peninsula of Oman, normally carries around 20 million barrels of crude oil and product, and roughly one-fifth of the world’s traded Liquefied Natural Gas (LNG), every day. There is no easy alternative route for these flows.

India is the world’s third largest energy consumer. It depends on Gulf countries for nearly 40 per cent of its crude oil imports and over 80 per cent of its LNG imports, almost all of which transit the Strait of Hormuz. The conflict therefore created an immediate risk of supply disruption and price shock to the Indian consumer. The government activated several measures: diversifying crude purchases towards producers outside the Gulf, drawing on the Strategic Petroleum Reserves where appropriate, coordinating shipping and insurance arrangements with friendly partners, and using its diplomatic relationships with Iran, Israel, the United States, the Gulf states and Russia to keep dialogue open.

Domestically, public-sector oil marketing companies were instructed to absorb part of the price volatility so that retail prices of petrol, diesel and LPG did not rise sharply. The strategy combined diplomacy, supply diversification, the use of strategic reserves, and price-stabilisation mechanisms. The episode has reinforced the case for long-term steps such as the International North–South Transport Corridor (INSTC), Chabahar port, expanded ethanol blending, and accelerated rollout of renewable energy.

For exam aspirants, the case study links the geography of the Strait of Hormuz, India’s energy import basket, the role of Strategic Petroleum Reserves, the rupee–oil–inflation linkage in monetary policy, and India’s energy-security diplomacy.