As the tensions between Israel and Iran continue to escalate, India is keeping a close watch on the situation and reviewing developments on a daily basis, petroleum minister Hardeep Singh Puri said on Monday. He also assured that India has sufficient oil reserves to manage any short-term disruptions.
“We are closely monitoring the evolving global scenario. At present, we have adequate oil stocks,” Puri told reporters. The Israel-Iran conflict has triggered volatility in global crude oil markets. On Friday, following a series of coordinated Israeli airstrikes on Iranian nuclear facilities, oil prices saw their largest intraday spike in years. Brent Crude surged nearly 13% to $77.77 per barrel, while West Texas Intermediate (WTI) jumped 12.6% to $76.61 per barrel. Analysts at JPMorgan warned that continued escalation could push prices as high as $120 per barrel.
Iran retaliated with missile strikes toward Israel, one of which caused damage to the Haifa refinery, resulting in a partial shutdown. In response, Israel reportedly targeted key Iranian energy infrastructure, including the South Pars gas field—one of the world’s largest natural gas reserves.
These developments have raised concerns among global energy markets, particularly regarding the security of the Strait of Hormuz—a vital chokepoint through which nearly 20% of the world’s oil and 25% of its liquefied natural gas (LNG) flows. Despite the rising tensions, Indian officials have maintained that the domestic supply situation remains stable. “There are no current disruptions in supply or transportation. The situation remains almost normal,” a senior government official said.
However, officials warned that any blockade of the Strait of Hormuz would significantly worsen the situation. “Closing the strait is in no one’s interest. Any disruption on the supply side will drive prices higher,” the source added.
India imports about 40% of its crude oil and nearly half of its LNG from West Asia, primarily from Saudi Arabia, Iraq, Kuwait, and the UAE—all of which rely on the Strait of Hormuz for exports. A prolonged disruption could not only affect imports but also India’s export of refined petroleum products such as diesel and petrol to Europe. If the Strait is blocked, shipments would need to be rerouted via the Cape of Good Hope—adding nearly two weeks in transit time and significantly increasing freight costs. Meanwhile, the Ministry of Commerce noted that many trade contracts are on a monthly basis, meaning the short-term impact may be limited. However, if the conflict continues, there could be significant implications for India’s imports and exports.
“These contracts are typically for a month. In the short term, they are often unaffected, but if the conflict is prolonged, there could be trade implications,” a ministry official stated. “We are in constant touch with our exporters and are holding regular meetings with stakeholders.”