Renewed US-Iran tensions have again placed the Strait of Hormuz at the heart of worldwide energy concerns, with new strikes, responses, closure threats and an attack on a vessel carrying Indian crew. Yet for India the current situation differs from earlier crises that caused prolonged fuel shortages. In the past 90 days New Delhi has diversified crude sources, raised spot purchases and lowered reliance on fixed Gulf contracts. State refiners now buy more from Russia, the United States and West Africa while seeking flexible deals that cut dependence on any one region. This approach aims to protect supplies during disruptions such as those now occurring in the Gulf. Although a long closure of the strait would still raise prices, the wider supplier base should help India cope better than in March. The change followed attacks on shipping linked to the US-Israel-Iran conflict. Refiners have cut long-term Middle East contracts and turned to short-term buys through global traders. India imports about 90 percent of its crude, or five million barrels daily, with more than half historically secured through annual deals with Saudi Arabia and Iraq. Those contracts are now being reduced. Earlier shortages forced diplomatic trips to the UAE, Saudi Arabia and Qatar. Recent visits to Europe seek wider energy and trade links. Russian oil has grown since 2022 but may not fully meet demand.
