Strait of Hormuz Crisis Exposes Gaps in India's Energy and Shipping Security

The recent conflict involving Iran has shown that control over strategic waterways can hurt economies as much as sanctions do. By leveraging the Strait of Hormuz — the narrow sea passage through which roughly one-fifth of the world's oil supplies pass — Iran exposed a major vulnerability in the global economy, and the resulting disruption to energy flows appears to have shaped the eventual response of the United States.

Under a memorandum of understanding (MoU) that envisages lifting sanctions on Iran, Tehran has set up a Persian Gulf Strait Authority as the sole body handling transits through the Strait of Hormuz, and is to hold talks with Oman and other Gulf states on managing the waterway. Previously, ships crossing the Strait neither paid tolls nor reported to Iran or Oman. Whether or not transit fees follow, shipping companies must now treat Iran as a decisive stakeholder in the Strait.

For India, the crisis revealed a serious strategic weakness. Despite the Strait of Hormuz being vital to its energy security, India had no credible contingency plan. Its supply of LPG (cooking gas) in particular depends heavily on imports moving through the Strait, supported by a limited fleet of Indian-flagged carriers, tight scheduling and little long-term storage. India's relatively weak shipping sector reflects its broader maritime position, even though Indian seafarers earn billions of dollars in foreign exchange while facing risks from piracy and conflict.

Other countries are already reducing their dependence. The United Arab Emirates, for instance, is pursuing a zero Hormuz dependency strategy by building alternative routes and infrastructure. India is urged to do the same: diversify supply chains, invest in alternative sea and land corridors (such as the Chabahar port project in Iran), and strengthen strategic partnerships to protect its energy security.

For exams, locate the Strait of Hormuz on the map (between Iran and Oman/UAE, connecting the Persian Gulf to the Gulf of Oman), remember that about 20 per cent of global oil passes through it, and link it to India's energy security, the Chabahar port and the idea of zero Hormuz dependency.