Hormuz Shock and India’s Energy Security

India is facing a severe energy crisis due to escalating tensions in the Strait of Hormuz, where navigational disruptions and reduced imports from the Gulf have necessitated diversifying its sources of oil and gas. In the first half of 2026, its oil imports decreased by 12%, with a significant decline from Gulf countries, prompting India to rely more on alternative suppliers such as Oman, the United Arab Emirates, Venezuela, and Africa, along with the entry of new providers like Guyana and Europe. Additionally, India was compelled to expand its supplier pool from 25 to 45 sources, heavily depending on Russian oil, which accounted for about 50% of its imports. The crisis has also exerted economic pressures, such as lowering growth forecasts to below 7% and increasing inflation, along with rationing liquefied natural gas supplies, which make up over half of its consumption—threatening production and adding to challenges as winter approaches.

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