Just as tensions in West Asia are flaring up, situation around the global energy chokepoint – Strait of Hormuz – also appears to be turning bad, hitting the global oil supply chain. Despite these worries, India seems to be enjoying a rather relaxed position, securing both LPG and crude oil in a significant amount.
In a major development amid the escalating Iran war and disruptions in the Strait of Hormuz, at least seven oil tankers carrying Russian crude, originally bound for China, have been diverted to India, offering New Delhi a crucial energy lifeline.
The rerouting comes at a time when the Strait of Hormuz, a vital artery for nearly 20% of global oil flows, remains effectively choked due to the ongoing US-Israel-Iran conflict. With shipments stalled and risks mounting, India has moved swiftly to secure alternative supplies.
India’s crude oil imports: US waiver opens the door
The shift in China-bound tanker routes follows a temporary waiver granted by the United States, allowing India to purchase sanctioned Russian oil currently stranded at sea. This has triggered a rapid recalibration in global oil flows. Tankers such as Aqua Titan, now headed to New Mangalore, and Zouzou N, bound for Gujarat’s Sikka port, reversed course mid-journey.
India, which imports nearly 90% of its crude oil, is among the most vulnerable to supply shocks in West Asia. The Hormuz chokepoint is especially critical as 40-50% of India’s crude imports pass through the Strait, around 50% of LNG imports depend on the route, while up to 90% of LPG shipments transit via Hormuz.
With Iranian restrictions slowing tanker movement, India has already begun facing LPG shortages, impacting commercial sectors like hospitality in major cities. The incoming Russian crude is expected to ease immediate supply pressures, stabilise refinery operations, and prevent further disruptions in fuel availability.
India steps up Russian oil purchases
In just one week, Indian refiners have secured nearly 30 million barrels of Russian crude, marking a sharp shift after earlier reductions in imports from Moscow. This comes as global competition intensifies. China had previously ramped up Russian purchases amid discounted pricing, but the US waiver has now reopened the playing field, prompting India to act decisively.
The redirection of oil tankers underscores a broader transformation in global energy logistics. With around 20 Indian-flagged vessels still awaiting clearance near Hormuz, uncertainty remains high.
India has simultaneously ramped up naval deployments in the region to escort fuel carriers, while continuing diplomatic engagement with Iran to ensure safe passage.