Impact of the Strait of Hormuz closure on oil supply, India’s situation, and international crude prices:
3 March 2026 Breakdown of the impact of the Strait of Hormuz closure in light of the US - Israel led war with Iran, on oil supply, India’s situation, and international crude prices: ๐ Global Oil Supply Impact Strait of Hormuz’s importance : Roughly 20% of global oil and LNG trade passes through this chokepoint. Its closure disrupts nearly one-fifth of the world’s energy flows. Immediate effects : Tankers are halted, shipping costs and insurance premiums spike, and supply chains face delays. Price surge : Brent crude jumped from ~$73 to ~$83 per barrel within days — a ~7–10% increase. Ripple effects : LNG freight rates rose over 40%, and natural gas prices in Europe surged ~30%. ๐ฎ๐ณ Impact on India Dependence : Around 50% of India’s crude imports transit via Hormuz , making it highly vulnerable. Current buffer : India holds 10–15 days of crude stocks and ~100 million barrels in commercial + strategic reserves, giving short-term protection. Risks : Prolonged...