The development comes amid the Iranian government’s closure of the Strait of Hormuz and reports of vessels passing through the passage being targeted, as the war between the West Asian country and Israel, backed by the United States, escalates.
Also Read: Strait of Hormuz is closed down: How high can oil prices go?Earlier, in his first public comments since succeeding his father, Iran’s new supreme leader Mojtaba Khamenei had said that the Islamic Republic would seek to ensure the critical waterway for crude and natural gas stays closed.
India’s import lifeline
Rising tensions in West Asia are beginning to affect Indian households, particularly the supply of liquefied petroleum gas (LPG), the cooking fuel used by more than 33 crore homes. Much of India’s LPG imports come from Gulf producers and are shipped through the Strait of Hormuz, a narrow corridor linking the Persian Gulf to global markets.
The strait handles about 20% of global oil and gas trade and is a key route for India’s energy imports. Nearly half of India’s crude oil and a significant share of LPG and LNG cargoes pass through it. With India importing around 90% of its crude oil, any disruption in the route can delay shipments, raise freight costs and push up energy prices.
