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Energy Supply Security for India Amid US-Iran Conflict

Monday, July 13, 2026
5 min read
Energy Supply Security for India Amid US-Iran Conflict

The latest phase of that US-Iran war just keeps raising the alarm bells about energy supplies for India. We’re talking about LPG , LNG , and crude oil availability.

Back in the beginning of this conflict, when those US strikes hit Iran killing Ali Khamenei the fear was already there: supply disruptions rattling everything in the energy markets. It always is when things get hot.

Iran announced it closed the Strait of Hormuz on Sunday. Then they launched missiles and drones at Gulf neighbors after another round of US strikes. Things escalated fast.

US CENTCOM hours later said, though, that the waterway itself remained open. They just don't buy the official line sometimes.

That latest exchange of fire? It started with an Iranian attack on a commercial vessel in Hormuz. The crew had to abandon ship after the boat caught fire.

Then Iran made their move again. Their Revolutionary Guards said they were closing the Strait until further notice, waiting for American interventions to stop. That’s what state news reported.

Diplomatic efforts kept going, sure. President Trump declared a ceasefire earlier this week. But you can't just expect things to settle quickly when the fighting is still on. There’s still that lingering uncertainty about security in one of the world's busiest shipping lanes.

But for India? Crude oil imports seem largely insulated from any immediate chaos around Hormuz right now.

Ritolia, who models these markets at Kpler, said something interesting. The crude flows hadn't fully recovered before this latest escalation even hit. But for India over the last hundred days, it’s been business as usual. Refiners managed supply fine through a wide mix of imports.

Russia is still a huge player here. They account for a significant chunk of what India buys. And you have Saudi Arabia and the UAE feeding in, using those bypass routes. West African and Latin American grades also help diversify what refiners use. It’s a layered system, that supply security they’ve built up.

Still, the numbers shift when we look closer at gas. Remember how panic buying LPG cylinders happened during the initial weeks of the conflict? People were worried sick.

It took time for things to stabilize there. The Centre eventually pulled those sectoral restrictions on non-domestic packed LPG and brought supplies back to normal levels. Relief came, but it was a separate issue entirely.

Ritolia pointed out that while crude cargoes can still move through Hormuz safely, you need to watch the gas markets now. That’s where things get shaky. LPG and LNG don't have those easy short-term alternatives. They remain way more vulnerable to any ripple effect from Gulf shipping or wider disruptions in the region.

He warned that instability for a longer stretch could really tighten up availability, push freight costs higher, and put pressure back on regional prices. We’ve seen that pattern over the last few months.

For now, India's crude story is still about resilience and spreading out the risk. It isn't immediate scarcity. The real headache the variables we have to watch is how long these tensions stick around. How much does it hammer shipping and insurance costs? And most importantly, whether those LPG and LNG markets actually start seeing meaningful disruptions soon. That’s where the pressure really builds up.

Written by Gree News Team — Senior Editorial Board

Gree News Team covers international news and global affairs at Gree News. Our collective of senior editors is dedicated to providing independent, accurate, and responsible journalism for a global audience.

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