How India is Securing Oil Supplies Amidst Middle East Turmoil

As tensions rise in the Middle East, India is proactively seeking support from the United States to ensure the safe transport of oil. With a significant portion of its energy needs met through imports, the country is exploring various sources to maintain its supply chain. This article delves into India's current oil stock situation, its negotiations with global suppliers, and the impact of the Strait of Hormuz's closure on LNG supplies. Learn how India is navigating these challenges to secure its energy future.

By Narendra Chaudhary Mar 5, 2026, 20:24 IST

India's Strategic Moves for Energy Security

New Delhi: In a bid to ensure a steady flow of energy, India is seeking assistance from the United States for maritime protection of vessels transporting oil from the Middle East, as stated by a senior official from the oil ministry.

Currently, India has sufficient reserves in tanks, pipelines, and ships, covering a 25-day requirement for crude oil, which is essential for producing fuels like petrol and diesel, along with a similar duration of finished fuel stock.

The ongoing conflict in West Asia has hindered tanker operations through the Strait of Hormuz, a crucial maritime route that facilitates approximately 20% of the global oil supply and significant amounts of liquefied natural gas (LNG).

India relies on imports for about 88% of its crude oil and nearly half of its LNG, with a significant portion of these shipments passing through the Strait, which is only 21 nautical miles wide at its narrowest point, featuring two narrow shipping channels.

According to the official, India is currently in a stable position, as oil continues to flow from non-Strait sources, and the country is exploring suppliers from West Africa, Latin America, and the US to compensate for any potential losses.

Discussions are ongoing with major oil producers and traders to secure supplies of oil, liquefied petroleum gas (LPG), and LNG.

The official mentioned that India is coordinating with US authorities to obtain coverage from the International Development Finance Corporation (IDFC) for vessels navigating the Strait of Hormuz.

US President Donald Trump has instructed the IDFC to offer political risk insurance and financial guarantees for maritime operations in the region.

However, before the IDFC can provide this coverage, a fund amounting to hundreds of millions of dollars must be established, with the insurance premium to be borne by the contracting parties.

India is also considering purchasing oil from various sources, including Russia, to replenish its crude reserves.

The government is negotiating with suppliers such as Sonatrach and the Abu Dhabi National Oil Company, along with global traders like TotalEnergies, Vitol, and Trafigura, to secure additional oil and gas supplies.

Moreover, imports of oil and cooking gas LPG from the United States have seen an uptick.

Despite a comfortable oil stock position, the closure of the Strait of Hormuz has led to a reduction in LNG supplies to India, affecting gas availability for industries.

To address this issue, the government may need to prioritize gas distribution to ensure that critical sectors receive the necessary fuel.

India's natural gas consumption stands at approximately 195 million standard cubic meters per day (mmscmd), with half of this met through imports. The disruption in shipping through the Strait of Hormuz and force majeure declarations from QatarEnergy, India's largest LNG supplier, have resulted in a loss of about 60 mmscmd of gas.

Oil Minister Hardeep Singh Puri has been in discussions with the International Energy Agency (IEA) and the Organisation of the Petroleum Exporting Countries (OPEC) regarding the evolving situation in the oil market.