Recent US strikes on Iran's nuclear facilities have reignited concerns over the potential closure of the Strait of Hormuz, a critical chokepoint for global oil and gas supply [1][2]. The narrow waterway, through which approximately one-fifth of the world's oil and gas flows, has become a focal point of geopolitical tension [1][2].

For India, a major oil importer, the situation appears less dire than for some other nations. Despite relying on the Strait for about 2 million barrels per day (bpd) of its total 5.5 million bpd crude oil imports, India has diversified its sources, providing a buffer against potential disruptions [1][2].

Industry officials and analysts suggest that India is well-positioned to weather a potential closure of the Strait. Alternative sources, including Russia, the United States, and Brazil, could fill any supply gaps [2]. Notably, Russian oil imports are logistically independent of the Strait of Hormuz, utilizing routes via the Suez Canal, Cape of Good Hope, or the Pacific Ocean [2].

The global implications of the current tensions are significant. Oil prices have surged by more than 10% since Israel's airstrikes against Iran on June 13, 2025 [3]. The World Bank has revised its global growth forecast for 2025 down to 2.3%, following a 2.8% growth in 2024 [3].

Europe's energy security is also at stake. Markets are pricing in risks to global oil and liquefied natural gas (LNG) supply [3]. If Iran were to block the Strait of Hormuz, through which a third of global seaborne oil and a fifth of global LNG shipments travel, oil prices could potentially exceed $100 per barrel [3].

As tensions continue to simmer, the global community watches closely. While India appears relatively secure in its energy supply, the potential for broader economic impacts remains a concern for nations worldwide.