New Delhi: India will pivot to alternative sources of crude oil and suspend exports of petroleum products if the Strait of Hormuz — one of the world’s most critical oil transit chokepoints — is blocked due to escalating hostilities between Iran and Israel, Petroleum and Natural Gas Minister Hardeep Singh Puri told NDTV in an exclusive interview.
“If the supply from the Strait of Hormuz is impacted, then India will increase its domestic production and will not export,” Puri said, adding that India will also “buy from other sources.”
Amid fears of a disruption in Gulf oil routes following Iran’s threats and growing military exchanges in the region, Puri emphasised that India has prepared for contingencies. “India has options even if Iran seals the Strait of Hormuz,” he said.
According to tanker data, about 47 percent of India’s crude oil supplies pass through the Strait of Hormuz, and approximately 38 percent of India's imports now come from Russia — delivered via alternative routes not dependent on the Gulf. According to commodity intelligence firm Kpler, Indian refiners have significantly increased oil purchases from Russia and the US for June in anticipation of further instability in the Middle East. These purchases aim to offset any supply risks posed by the Israel-Iran conflict and to contain price volatility.
While acknowledging that a nation dependent on imports for over 85 percent of its crude needs would naturally feel the tremors of any global supply shock, the minister offered reassurance. “There is more oil available on the global market than at any point in recent history,” he said, noting that newer producers like Brazil, Guyana, and Canada are expanding output. The United States, the world’s largest oil producer, is pumping over 13 million barrels per day and planning to add another 1.5 million barrels. However, he said that while crude oil supply is not a concern, pricing is, as insurance costs have already gone up and freight rates may go up if tankers are attacked and have to be re-routed.
“Insurance prices are going up, which means there will be some additional cost. So far, merchant shipping has not been hit,” he said.
On whether rising crude prices will affect Indian consumers, Puri said the government has a track record of cushioning the impact. He recalled excise duty cuts made in November 2021, May 2022, and March 2024. “As a result of the Central government’s action, the fuel price came down by Rs 13 and Rs 16, respectively, for petrol and diesel,” he said.
Puri credited India’s proactive energy procurement strategy under Prime Minister Narendra Modi, under which the country’s energy sourcing has been diversified far beyond its historical dependence on Gulf nations. India has been getting oil from Brazil, Guyana, Canada, the US and other countries.
The Strait of Hormuz remains a critical artery for global oil trade. Around a fifth of the world’s daily oil flows through this narrow waterway. Between 2022 and May 2025, 17.8–20.8 million barrels of crude, condensate and fuels transited the route daily, according to Vortexa data.
Despite Iranian threats over the years, the strait has never been fully closed, Puri noted. “Frankly, people agonise about that. But as far as I am aware, in the last 50 years of our history, the Strait of Hormuz has never been closed,” he said.
The minister also highlighted that the global interest — including from major importers like China and producers like the US and even Iran — is aligned toward keeping the route open.