Russia has expressed readiness to assist India with energy supplies in case of disruptions caused by the escalating conflict in West Asia, according to a Reuters report citing a Russian source.
The development comes as Iran has blocked the strategic Strait of Hormuz following ongoing military actions involving the United States and Israel. The closure of the crucial shipping route has triggered a sharp rise in global oil prices and raised concerns over energy security.
The Strait of Hormuz, located between the Persian Gulf and the Gulf of Oman, is one of the world’s most vital energy corridors, with nearly one-fifth of globally traded oil passing through it.
In a statement, the Ministry of External Affairs flagged the potential economic consequences of disruptions in the region. “Our trade and energy supply chains also traverse this geography. Any major disruption has serious consequences for the Indian economy,” the ministry said, while also stressing the need to ensure the safety of nearly one crore Indian nationals residing in West Asia.
India imports roughly 50 per cent of its crude oil and about 54 per cent of its liquefied natural gas (LNG) through the Strait of Hormuz, making the route critical for the country’s energy needs. LNG shipments from Qatar and the UAE also transit through the strait.
Meanwhile, as tensions intensify, as many as 37 Indian-flagged vessels carrying 1,109 seafarers are stranded in the Persian Gulf, the Gulf of Oman and adjoining sea areas due to the closure of the route, an official aware of the development told PTI. Some of these ships are transporting crude oil and LNG to Indian ports, while others are en route to load petroleum products from Gulf nations.
In a related development, Petronet LNG Ltd has informed gas marketers that Qatar has halted production and declared force majeure following an Iranian drone strike, as reported by PTI. A force majeure clause allows contractual obligations to be suspended under extraordinary circumstances.
Qatar supplies nearly 40 per cent of the approximately 27 million tonnes of LNG that India imports annually. Petronet alone imports 8.5 million tonnes per annum under a long-term contract. The disruption has reportedly led to supply cuts of up to 40 per cent for certain Indian industries.
With the conflict entering its fourth day, concerns are mounting over prolonged disruptions to global energy supplies and their impact on India’s economy and trade.