India navigates Hormuz crisis: Pipelines rerouted, Russian oil surge

In response to escalating geopolitical tensions and disruptions in the Strait of Hormuz, India has implemented a multi-pronged strategy to ensure its crude oil supply remains secure. The country is actively rerouting a significant portion of its oil imports through the Saudi Arabian East-West pipeline and the UAE's Habshan-Fujairah pipeline, effectively bypassing the Strait of Hormuz, a critical chokepoint for global energy trade. This strategic rerouting aims to mitigate the risks associated with potential blockades or attacks in the Strait, which typically handles approximately 20% of the world's oil and LNG. Coinciding with these pipeline diversions, India has witnessed a dramatic surge in its imports of Russian crude oil. This increase has been facilitated by a temporary waiver granted by the United States, allowing Indian firms to purchase Russian oil that was loaded onto ships before a certain deadline. Before the current conflict, Russian crude constituted a small fraction of India's imports, but its share has risen significantly, with some reports indicating an increase to 1.5 million barrels per day (bpd) in the initial days of March. This pivot to Russian oil, previously available at discounts, now involves premiums, highlighting the increased demand and competition for alternative supplies. The ongoing conflict, stemming from US-Israeli strikes on Iran and subsequent retaliation, has effectively brought maritime traffic through the Strait of Hormuz to a near standstill. This has had a cascading effect on global energy markets, leading to significant price volatility. Brent crude prices have swung wildly, briefly touching highs around $120 a barrel before experiencing some pullbacks on expectations of de-escalation or strategic reserve releases. The disruption is impacting not only crude oil but also Liquefied Petroleum Gas (LPG) and Liquefied Natural Gas (LNG) supplies, areas where India has a higher dependence on the Strait. Saudi Arabia is actively ramping up its East-West pipeline to near full capacity, estimated at 7 million barrels per day, to transport crude to the Red Sea port of Yanbu, thereby enabling exports that bypass the Strait of Hormuz. Similarly, the UAE is utilizing its pipelines to reroute oil. However, these alternative pipeline capacities, while crucial, cannot fully compensate for the massive volumes that normally pass through the Strait. For India, a country heavily reliant on energy imports (over 88% of its oil requirement), the situation at the Strait of Hormuz is of paramount concern. Approximately 40% of its crude oil imports typically transit through this waterway. While India has substantial crude oil inventories, estimated to cover around 25 days of consumption, the prolonged closure of the Strait poses a significant risk to its economy, potentially leading to higher import bills, currency depreciation, and widening current account deficits. The government has assured that about 70% of its crude oil imports are now coming from outside the Strait of Hormuz, with oil marketing companies securing cargos through various alternative sources. The Ministry of Petroleum and Natural Gas has stated that India's crude oil supply remains secure, with the secured volumes exceeding normal arrivals through the Strait. The Joint Secretary, Sujata Sharma, emphasized that the country imports crude oil from 40 countries, and gas companies have procured LNG cargoes from new sources. Furthermore, the government is actively monitoring the safety and security of Indian vessels and seafarers operating in the Persian Gulf. In conclusion, India's strategy to navigate the Strait of Hormuz crisis involves a dual approach: maximizing the utilization of existing alternative pipeline infrastructure in Saudi Arabia and the UAE, and significantly increasing imports from Russia, facilitated by a US waiver. This diversification of supply sources and routes is crucial for maintaining energy security amidst the volatile geopolitical landscape in the Middle East. The news was published on March 11, 2026, based on multiple reports from that date.

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