The conflict was triggered by the killing of Ayatollah Ali Khamenei in joint United States-Israeli strikes on February 28, after which Iran retaliated against Gulf-based American and Israeli assets, disrupting Hormuz trade routes.
India's weekly crude imports collapsed from 25 million barrels in February to just 1.9 million barrels in the week ended March 6, as Middle East suppliers cut export volumes sharply.
India has expanded its energy sourcing to 41 countries as the government works to keep supplies steady amid rising tensions in West Asia and concerns over key shipping routes.
India today is in a far stronger position to handle disruptions in global energy markets than it was a decade ago.
Iran’s permission to the two Indian tankers to pass through the Strait of Hormuz is being seen as a step that ensures the secure passage of energy supplies to India amid heightened tensions in the region due to the ongoing war in West Asia.
India is in touch with other suppliers, asserting that there is no shortage of LPG, LNG, and crude oil in the world, the government sources added.
Highlighting the country’s heavy reliance on oil shipments passing through the Strait of Hormuz, he warned of significant risks to India’s energy security.
India is confronting a familiar but increasingly urgent dilemma - how does it shield its energy lifelines from a war it does not control but cannot escape.
According to Sehul Bhatt, Director of Crisil Intelligence, developments in the Middle East have significantly increased pricing and procurement risks for crude oil and liquefied natural gas (LNG)
He said India’s installed nuclear capacity, which stood at 4,780 MW in 2014, has risen to 8,780 MW and is projected to reach 22,380 MW by 2031–32, 47 GW by 2037, 67 GW by 2042, and 100 GW by 2047.
