Explained: From where India is sourcing crude amid Strait of Hormuz blockade

The Strait of Hormuz, the world’s most critical oil shipping route, has effectively been shut after Iran’s Islamic Revolutionary Guard Corps (IRGC) halted tanker movement during the ongoing conflict with the United States and Israel. The closure has brought commercial traffic through the narrow passage to a standstill, holding energy exports from the Persian Gulf to ransom. The crisis has intensified further after the U.S. carried out strikes targeting Iranian vessels suspected of laying naval mines in the region to secure the sea lane. 

With the corridor effectively blocked and no immediate resumption of shipping expected, oil-importing countries have begun scrambling for alternative supply routes. 

For India, the disruption has raised immediate concerns as the country depends heavily on imported crude to meet its energy needs. However, New Delhi has responded by rapidly diversifying its sourcing network, expanding oil procurement to nearly 40 countries to safeguard supplies. 

Alternative supply routes gain importance 

The shift has also changed the route through which crude reaches Indian refineries. 

Earlier, about 55% of India’s imports arrived via non-Hormuz routes, but with the current disruption that share has increased to nearly 70%, according to the reports. 

Indian refiners have stepped up purchases from West Africa, the U.S., and Latin America while also negotiating additional cargoes from Russia and other producers outside the conflict zone. This diversification helps reduce exposure to a single chokepoint and ensures that refineries continue operating even if Middle East shipments remain constrained. 

India expands crude sourcing to 40 countries 

According to the reports, to reduce dependence on the disrupted route, India has widened its supplier base significantly. Government data indicates that crude and energy imports are now being sourced from about 40 countries, compared with roughly 27 suppliers a decade ago. 

These include a diverse set of producers from West Asia, Africa, the Americas, and Europe, such as Algeria, Angola, Brazil, Canada, Colombia, Ecuador, Ghana, Nigeria, Norway, the U.S., and Venezuela, besides traditional Gulf suppliers such as Saudi Arabia, Kuwait, and the UAE. 

According to the government officials, the diversification strategy has allowed India to maintain stable refinery operations even as shipping lanes in the Gulf remain volatile. Diplomats and energy officials are also in constant touch with exporting nations to ensure uninterrupted cargo flows. 

Why the Strait of Hormuz matters for India 

The Strait of Hormuz connects the Persian Gulf with the Gulf of Oman and the Arabian Sea, making it the primary shipping route for crude exported by major Gulf producers such as Saudi Arabia, Iraq, Kuwait, and the United Arab Emirates. India imports close to 88% of its crude requirement, and historically a large share of those shipments have passed through this narrow passage. 

In recent years, 40–50% of India’s crude imports have moved through the Strait, making the country particularly exposed to disruptions in the region. Following Iranian attacks and escalating military tensions in West Asia, tanker traffic through the strait has almost come to a halt, forcing oil-importing countries to scramble for alternative routes and suppliers. 

Russia remains a key supplier 

Despite geopolitical complexities, Russia continues to be one of India’s largest crude suppliers. Reports say India recently imported roughly 0.04 million barrels per day from Russia, accounting for close to one-fifth of the country’s oil supply in certain periods. The availability of discounted Russian crude since the Ukraine conflict has also helped Indian refiners manage costs. 

Russia has signalled its willingness to redirect additional cargoes to India if disruptions in the Gulf persist, providing another cushion against supply shocks. 

Strategic reserves provide short-term buffer 

India’s preparedness also includes emergency stockpiles. 

The country maintains strategic petroleum reserves of about 5.33 million metric tonnes, which can cover roughly 9.5 days of crude demand. In addition, oil marketing companies hold inventories that can sustain supply for over 60 days. Together, these reserves provide a short-term buffer in case global shipments face temporary disruption due to geopolitical conflicts.