Currently dominating the news and only a few dozen kilometres wide at its narrowest point, the Strait of Hormuz holds immense significance for global energy trade. The strait carries roughly a quarter of the world’s seaborne oil trade – nearly 20 million barrels of oil each day – and around one-fifth of global liquefied natural gas (LNG) trade. The Strait of Hormuz has become a zone of uncertainty due to the ongoing Iran war, with effects being felt far beyond the region. Brent crude has crossed $100 per barrel a few times in the last few weeks, shipping has slowed, and insurance premiums have surged. The present situation is a reminder of the risks associated with the dependence of the global energy system on a handful of vulnerable maritime chokepoints, namely Hormuz, the Suez Canal, Bab el-Mandeb, and the Strait of Malacca.
For India, the moment raises a necessary and uncomfortable question: has the country’s much-discussed diversification of energy imports created genuine resilience, or merely a more sophisticated form of exposure? Over the past decade, India has consciously broadened its crude sourcing strategy. Today, Indian refiners procure oil from around 40 countries, including Russia, the United States, Brazil, Nigeria, and suppliers across Latin America and Africa. That shift accelerated after the Russia–Ukraine conflict rearranged global oil flows and forced importers to think more strategically about supply security. India’s crude basket is unquestionably more diverse today than it was a decade ago.