The Strait of Hormuz has been effectively shut for months, choking the artery that carries a fifth of the world's energy. For New Delhi, the problem is acute: 89% of India's crude comes from imports, with 48% of that volume sourced directly from the Gulf. It's a structural vulnerability that no amount of diplomatic posturing can fix overnight.
Rajeev Agarwal, a senior research consultant at the Chintan Research Foundation in New Delhi, broke down the numbers for PTI. India imported roughly 1.8 billion barrels of crude in 2025. The pipeline is broken. Ships can't pass. The Red Sea and Bab el-Mandeb route, usually the backup, is now under threat from Houthi attacks and escalating Iran-Israel-US tensions.
The workaround? Fujairah. Located on the UAE's coast in the Gulf of Oman, it sits outside the Strait of Hormuz. It has become the primary lifeline for Gulf oil reaching India. Mannat Jaspal, climate and energy director at the Dubai-based Observer Research Foundation, pointed to a strategic collaboration signed in May. Under this deal, Abu Dhabi National Oil Company will boost its crude storage in India’s Strategic Petroleum Reserves to 30 million barrels. That’s nearly six times the current volume.
Cauvery Ganapathy, a fellow at ORF ME, offered a reality check. Rerouting isn't free. It means longer voyage times, higher risk premiums, and a direct hit to affordability for the Indian economy. "The re-routing and sourcing from other countries come with their own set of concerns," she told PTI over email. But the choice is less between cheap and expensive, and more between having oil and not having oil.
India is already playing the long game, diversifying purchases to over 40 countries including Russia, the US, Nigeria, and Venezuela. The next move is logistical. Energy officials and experts are pushing for a multi-pronged strategy that combines increased SPR capacity with enhanced port infrastructure in Oman and the UAE. The immediate goal is to build enough buffer stock to absorb the next shock before it hits the pump.