Tight squeeze: Why does the Strait of Hormuz matter to India?

As tensions in the Middle East continue, ripple effects are everywhere. Out at sea, tankers are pausing mid-route, making U-turns, zig-zagging through the Strait of Hormuz—unsure of what comes next.

This narrow stretch of water is a vital chokepoint for global energy. And while the waterway may seem far for us, it’s a high-stakes corridor.

Here’s a closer look at why the Strait of Hormuz matters deeply to India.

Energy lifeline

More than two-thirds of India’s crude oil imports and nearly 50 per cent of its LNG imports flow through the Strait of Hormuz, making it a vital route for our energy security¹

1.5 million barrels a day at stake

Out of 5.5 million barrels of oil that India consumes daily, around 1.5 million are shipped via this narrow passage²

West Asia trade corridor

India’s bilateral trade with the Gulf Cooperation Council is around USD178 billion, much of which depends on uninterrupted maritime movement through the Strait³

Supply chain stability

For India, in times of growing exports and bilateral ties, supply chain stability is crucial. Any disruptions in key routes—for instance, in the Strait of Hormuz—can lead to higher freight costs and insurance premiums, directly impacting India’s import costs and export timelines

Essential for a stable future

At a time when India is cruising as the fastest growing major economy, rising conflicts can put India’s energy security and inflation control at risk.⁴

While uncertainty persists, India isn’t unprepared. Strategic reserves, diversified suppliers and policy buffers can cushion us from adverse impacts. But with risks rising, staying agile and forward-looking will be key.

^[1] India faces potential energy and trade disruptions amid Israel-Iran conflict: GTRI, Maritime Gateway, 16 June 2025, accessed on 25 June 2025
^[2] Iran-Israel conflict: What the Strait of Hormuz crisis means for India’s oil security, CGVM, 23 June 2025, accessed on 25 June 2025
^[3]India and Gulf Cooperation Council, Embassy of India, accessed on 25 June 2025
^[4] India: Fastest-growing major economy, PIB, 23 April 2025, accessed on 26 June 2025