India Fortifies Energy Strategy as West Asia Conflict Threatens Global Supply Lines

• West Asia conflict raises risks of prolonged economic and energy disruption for India.

• Strait of Hormuz tensions threaten a key global oil and gas transit route.

• India holds 5.3 million metric tonnes in reserves, targeting 6.5 million.

• Energy imports diversified from 27 to 41 countries.

• Coal stocks adequate for summer demand surge.

• Oil prices exceed USD 100, risking further inflationary pressure.

As hostilities intensify in West Asia and concerns mount over disruptions along the vital Strait of Hormuz, Prime Minister Narendra Modi has cautioned that the unfolding conflict could have deep and lasting repercussions for India. Addressing Parliament on Monday, he emphasized the need for long-term preparedness, noting that the war’s consequences extend well beyond immediate geopolitical tensions.

The Prime Minister pointed out that the timing of the crisis presents additional challenges, with India entering its peak summer season. Rising temperatures are expected to push electricity demand significantly higher in the coming weeks. He reassured lawmakers that coal inventories at power plants nationwide remain sufficient to meet projected consumption levels.

Energy security, he said, remains a cornerstone of the government’s strategy. India currently maintains a strategic petroleum reserve of roughly 5.3 million metric tonnes, with plans underway to expand capacity to about 6.5 million metric tonnes. Over the past decade, the country has steadily built up emergency crude storage to buffer against global supply shocks, reinforcing its ability to respond during periods of instability.

The Prime Minister also highlighted a deliberate shift toward diversifying energy import sources. A decade ago, India sourced its energy imports from 27 nations; today, that network has broadened to 41 countries. This expanded supplier base is designed to reduce reliance on any single region and mitigate risks stemming from geopolitical volatility.

Domestic refining capabilities have also seen significant growth, strengthening India’s ability to process imported crude efficiently. According to the Prime Minister, continuous coordination with multiple international partners is underway to ensure uninterrupted flows of oil and natural gas despite global uncertainties.

Still, he acknowledged that the conflict has created complex and multi-layered challenges for India, touching economic stability, national security, and humanitarian concerns. India maintains deep trade relationships with countries directly and indirectly affected by the war, and a substantial portion of its global commerce transits through the region. Much of the nation’s crude oil, liquefied natural gas, fertilizers, and other key imports move through the Strait of Hormuz — a strategic maritime chokepoint now facing severe disruption.

Condemning recent attacks on commercial shipping, the Prime Minister described interference with international maritime routes as unacceptable. He stressed that diplomatic engagement remains active to safeguard the safe passage of Indian vessels and secure essential cargo, even amid volatile conditions.

Iran has effectively halted movement through the Strait of Hormuz, the narrow gateway connecting the Persian Gulf to global markets. Although Tehran has indicated that restrictions target the United States and its allies, maritime traffic has dwindled sharply following reported attacks on approximately 20 vessels. The strait is critical to global energy markets, carrying nearly one-fifth of the world’s oil and gas supplies.

The tightening supply situation has already rattled energy markets. Crude oil prices have climbed above USD 100 per barrel, a steep jump from around USD 75, and Iranian officials have warned that prices could escalate toward USD 200 if tensions persist.

Despite these pressures, the Prime Minister maintained that India is effectively managing its energy requirements. Nearly 60 percent of the country’s liquefied petroleum gas (LPG) demand is met through imports, making uninterrupted supply a priority for household energy stability. He reaffirmed that the government remains vigilant and proactive in shielding the nation from prolonged disruptions, underscoring that preparedness and diversification remain central to India’s resilience strategy.

As the geopolitical landscape remains uncertain, India’s focus, according to the Prime Minister, is clear: maintain supply continuity, strengthen reserves, and navigate the turbulence with strategic foresight.