Amid the Israel-Iran conflict, india has increased its crude oil imports from russia and the US. Most of India's crude oil imports now do not come through the Strait of Hormuz. Amid the escalating conflict between israel and iran, india has increased its crude oil purchases from russia and the US in june 2025, PTI news agency reported. Union minister for Petroleum and Natural Gas Hardeep Singh puri said that india has diversified its oil supply and most of its oil imports now do not come through the Strait of Hormuz.

"We have diversified our crude oil supply in the last few years. Now a large part does not come through the Strait of Hormuz," minister Hardeep Singh puri posted on social media platform X. In the Middle east, countries like saudi arabia and iraq are India's major crude oil suppliers. However, the US has also launched a direct attack on iran in support of Israel. US President donald trump announced that he had destroyed three nuclear sites in iran through air strikes. In this context, india has made this important decision in its crude oil procurement.
Oil reserves and security of supply:
Puri said that the oil Marketing Companies (OMCs) have sufficient oil reserves for several weeks and will continue to import crude oil through other channels. "Our oil marketing companies have sufficient reserves for several weeks and are getting continuous energy supply through various channels. We will take all necessary steps to ensure the stability of fuel supply to our citizens," he said in his post.

According to a report citing Kapler data, indian refineries are set to import 20 lakh to 22 lakh barrels of crude oil per day from russia by june 2025. This is the highest level of Russian oil imports in the last two years. Crude oil imports from russia in May 2025 were 19.6 lakh barrels per day. The report said that this increase will surpass the total volume purchased from gulf countries like iraq, saudi arabia, UAE, and Kuwait. indian refiners’ crude oil imports from the US rose to 4.39 lakh barrels per day in june 2025. It was 2.80 lakh barrels per day in the previous month. India’s crude oil imports from the Middle east declined to 20 lakh barrels per day in june compared to May 2025, the data report showed.

Russian crude oil:
India started importing oil from russia at low prices after US sanctions immediately after the Russia-Ukraine war began in february 2022. india buys nearly 51 lakh barrels per day of crude oil, which is refined into fossil fuels like petrol and diesel. So far, the Israel-Iran conflict has not resulted in any disruption to crude oil supplies or oil trade. However, there are fears that the conflict could push up oil prices worldwide. “While supplies are not yet affected, shipping activity is showing signs of a decline in Middle east crude exports in the coming days,” said sumit Ridolia, chief research analyst at Kapler.

If iran were to close the Strait of Hormuz, it would cut off a strategically important trade route for global crude trade. The strait connects the gulf of Oman, the Arabian Sea, and the Persian Gulf. The Strait of Hormuz handles nearly a quarter of the world’s oil trade. Therefore, any move to close the route would only escalate the already ongoing war. Experts have suggested that if there is an oil supply disruption, crude prices could rise to $400 per barrel. Experts have suggested that crude oil prices could rise to $400 per barrel. However, the Kapler analysis shows a very low chance of a complete blockade.

Nearly 40 percent of India’s total crude oil imports and 50 percent of its gas imports come through the Strait of Hormuz. However, Kapler data suggests that Russian oil imports are not connected to the Strait of Hormuz and are imported via the Suez Canal, the Cape of Good Hope, or the Pacific Ocean. As of june 19, 2025, Russian crude oil accounted for 35 percent of India’s total crude oil imports. If risks in the Middle east increase, indian refiners are likely to adjust their procurement strategies to prioritize energy security, supply stability, and commercial viability.
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Sowmiya Sriram

23/06/2025 10:35 AM