India's Crude Oil Strategy Shields Against Israel-Iran Conflict Risks

Despite escalating tensions between Israel and Iran, India's crude oil imports remain largely unaffected due to diversification across 40 countries. Experts highlight concerns about potential price volatility if key routes like the Strait of Hormuz are disrupted. India's heavy reliance on oil imports poses challenges amid global supply fluctuations.

Amid growing tensions between Israel and Iran, experts assert that India's crude oil imports are unlikely to face severe disruption, thanks to its diversified sourcing strategy. India imports oil from approximately 40 nations, including major suppliers like Russia, Iraq, Saudi Arabia, Abu Dhabi, and the United States.

Experts suggest price volatility in global oil markets is a concern, as disruption of crucial routes such as the Strait of Hormuz could trigger significant fluctuations. MK Surana, former Chairman of HPCL, mentioned that while direct imports from Iran are minimal, the conflict might still lead to a temporary spike in prices if escalated.

With India importing 88% of its oil needs, any increase in oil prices poses a challenge. Energy expert Narendra Taneja highlights this risk as the nation continues to be largely oil-dependent. Factors like demand projections and resumed production in countries like Libya may offer some relief to India's economy amid these global tensions.

(With inputs from agencies.)