India confronts major energy supply shock amid Middle East conflict
India faced its biggest energy supply shock in decades during the Middle East war, with major disruptions linked to restrictions on the Strait of Hormuz. The country is seeking to expand domestic oil production while managing limited strategic reserves.
India experienced the biggest energy supply shock in decades during the Middle East war, and major disruptions were linked to restrictions on the Strait of Hormuz, according to multiple sources.
Daily Sabah reported that India is import‑dependent and is expanding domestic crude‑oil exploration. Dawn said the energy crunch provided fresh impetus for expanding domestic supplies, quoting Minister Hardeep Singh Puri on the need for expansion, and noted that India is bidding out about 250,000 square kilometres for oil exploration.
Times of India reported that India's dependency on imported crude oil has exceeded 90 % in FY 26, that its strategic oil reserves presently last just five days, and that domestic crude‑oil production is waning while fuel consumption is rising, making the country vulnerable to global supply disruptions and geopolitical tensions.
TimesNowNews.com reported that the war in the Middle East caused a disruption in transport along the Strait of Hormuz, snapping supply of crude oil, natural gas and LPG from Gulf countries, and that Indian Strategic Petroleum Reserve Ltd holds around 3.372 million tonnes of crude stock, about 64 % of total storage capacity.
Dawn reported that restrictions and price hikes in India are being rolled back.
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