India has convened an emergency meeting of its energy security council following reports of potential US naval operations near the Strait of Hormuz, through which nearly 60% of India’s crude oil imports transit. The Ministry of Petroleum is now assessing strategic reserve levels and alternative supply routes amid fears of a prolonged Gulf disruption.

New Delhi, April 2026 — The Indian government has placed its oil import infrastructure on heightened alert after escalating US-Iran tensions raised the spectre of shipping disruptions in the world’s most critical oil chokepoint, the Strait of Hormuz.

Why Is India Concerned About Hormuz Tensions?

India imports approximately 85% of its crude oil requirements, with Gulf nations supplying the largest share. The Strait of Hormuz serves as the sole maritime passage for tankers departing from Iraq, Saudi Arabia, Kuwait, and the UAE bound for Indian refineries. Any blockade or military confrontation in this 33-kilometre-wide channel would immediately threaten India’s energy security and economic stability.

Petroleum Ministry officials confirmed that contingency protocols have been activated. These include coordination with the Indian Navy for potential tanker escort operations and accelerated talks with non-Gulf suppliers.

What Is India’s Current Strategic Oil Position?

India maintains strategic petroleum reserves at three locations: Visakhapatnam, Mangalore, and Padur. Together, these facilities hold approximately 36.7 million barrels, sufficient for roughly 9.5 days of national consumption. Industry experts have long argued this buffer remains inadequate compared to the 90-day reserves maintained by International Energy Agency member nations.

• India imports nearly 4.5 million barrels of crude oil daily from Gulf nations
• Approximately 18-20 million barrels transit the Strait of Hormuz daily worldwide
• Current Indian strategic reserves cover less than 10 days of consumption
• Russia has emerged as India’s top supplier, but Gulf dependence remains substantial
• Any sustained disruption could spike domestic fuel prices by 15-25%

How Are Indian Markets Responding?

Brent crude futures surged past $94 per barrel in early Monday trading, the highest level in eleven months. Indian oil marketing companies, including Indian Oil Corporation and Bharat Petroleum, have not announced retail price revisions but are monitoring developments closely. The rupee weakened 0.4% against the dollar amid broader risk-off sentiment across Asian markets.

Analysts at ICRA estimate that every $10 increase in crude prices adds approximately ₹0.80 per litre to India’s import costs, potentially widening the current account deficit if sustained.

What Happens Next?

The Cabinet Committee on Security is expected to meet later this week to review naval preparedness and diplomatic options. India has historically maintained neutrality in US-Iran disputes while protecting its energy interests through back-channel diplomacy. External Affairs Ministry sources indicate that New Delhi is urging restraint through its embassies in Washington and Tehran.

Energy analysts recommend watching for announcements on emergency crude purchases from Russia and the activation of bilateral swap agreements with the UAE. Should tensions escalate further, India may accelerate its long-delayed plans to expand strategic reserve capacity to 22 days of consumption under Phase II of the storage programme.