An established observation in the energy sector notes that conflicts in the Gulf region tend to affect global markets. Current tensions involving Iran and the United States, along with issues in the Strait of Hormuz, have produced this effect. Unlike past episodes, the response now includes efforts to reduce reliance on oil rather than solely securing supplies.
Crude prices stood near 70 dollars per barrel before the conflict. They have since reached 120 dollars and continue rising toward 200 dollars, with a potential floor near 65 dollars if stability returns. This substantial price movement has prompted renewed consideration of long-standing dependence on petroleum.
Global petroleum consumption totals approximately 162 crore litres daily. Annual per capita use averages around 730 litres worldwide. The United States accounts for nearly one-fifth of total demand. Any disruption in the strait handling one-fifth of supply creates effects felt from India to the United States.
The Strait of Hormuz functions as a critical artery for the world economy. Threats to passage, whether realized or not, trigger sharp reactions among traders and prompt urgent government meetings. The situation has highlighted the risks of relying on resources located in a single unstable area.
Historical evidence shows that energy crises often accelerate shifts toward alternative sources. The 1973 embargo spurred early solar research. The 1979 events encouraged nuclear expansion in Europe. The present conflict may further promote moves away from oil dominance.
Key options gaining attention include solar power, already deployed at scale; advanced nuclear systems offering steady carbon-free output; and thorium breeder reactors, where India possesses significant reserves.
India now ranks third worldwide in renewable capacity, with 250.52 GW installed as of December 2025 per IRENA data. Solar capacity exceeded 100 GW by January 2025 and reached 132.85 GW by November, reflecting more than 41 percent growth in one year. Capacity stood at 2.8 GW in 2014, marking substantial expansion.
In June 2025, non-fossil sources supplied half of India’s total power capacity, meeting the 2030 Paris target five years early. Each additional megawatt of solar reduces oil imports and associated vulnerabilities.
Solar generation depends on daylight, leaving gaps in continuous supply for large-scale industry and infrastructure. Nuclear power addresses this need through high capacity factors above 90 percent. One kilogram of uranium yields energy equivalent to 45,000 kilograms of coal, while thorium offers even greater potential in breeder systems.
Nuclear power currently contributes about 3 percent of India’s electricity from 19 reactors. Fast breeder designs convert fertile materials such as uranium-238 into usable fuel, creating a more self-sustaining cycle.
