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Hindustan Times
5 hours ago
- Business
- Hindustan Times
Iran hints at Strait of Hormuz closure. How will it impact Indian crude imports?
Amid its ongoing conflict with Israel and the US, Iran has hinted it may close the Strait of Hormuz, which lies between Iran and its Gulf Arab neighbours. The passage facilitates the daily supply of about a fifth of the world's oil, Bloomberg reported. (File photo) Oil tankers pass through the Strait of Hormuz,(REUTERS) Not just global, the closure of this strait may impact India's energy security as well, some experts have said. Tehran indicated the strait's closure for shipping after the US military struck three of Iran's key nuclear facilities. When asked about the closure, Iranian foreign minister Seyed Abbas Araghchi said, "A variety of options are available to Iran." Will closure hurt India? About 40 per cent of India's supplies are sourced from Middle East nations such as Iraq, Saudi Arabia, the United Arab Emirates, and Kuwait. These countries export crude oil to India through the Strait of Hormuz. About 2 million barrels per day (bpd) of crude oil, a significant portion of India's total imports, is sent through the passage. While there is a significant portion that India sources from the Middle Eastern countries, there is still less likelihood of a big impact on its oil supply if the strait is shut, news agency PTI reported. This is because India mostly imports Russian oil which uses the Suez Canal, Cape of Good Hope, or the Pacific Ocean for its passage, and not the Strait of Hormuz. Qatar, India's principal gas supplier, also does not use the Strait of Hormuz for supplies. Similarly, India's other sources for LNG supply in Australia, Russia and the US would also not be impacted by the strait's closure. Impact on imports from Saudi, Iraq India's crude oil imports from Iraq, and to an extent from Saudi Arabia, will be impacted if the Strait of Hormuz is closed, said Dr Laxman Kumar Behera, Associate Professor at Special Centre for National Security Studies at JNU. Besides, if the Strait of Hormuz is closed even briefly, it will impact oil markets significantly, a recent analysis by the International Energy Agency showed. "With geopolitical and economic uncertainties affecting oil producers and consumers alike, oil supply security remains high on the international energy policy agenda," it said. Nearly 30 per cent of global oil and one-third of the world's LNG (liquefied natural gas) use the Strait of Hormuz for their passage. Its closure could have significant global repercussions, including costlier rerouting of oil shipments and an impact on the currencies of the countries in the region. Will Iran shut Strait of Hormuz? Ever since the Israel-Iran conflict began on June 13, Iran has hinted at closing the Strait of Hormuz. Apart from the Iranian Foreign Minister, Mohammad Javad Hosseini, the deputy chief of mission at the Iranian embassy, had also said closing the Strait of Hormuz is an option. Despite this, a prolonged Strait of Hormuz disruption is very unlikely. The Strait of Hormuz not only deals with exports of Saudi Arabia, the UAE, Kuwait and Qatar, but also of Iran itself. China is the number one importer of Iranian oil at 47 per cent of its seaborne crude, reportedly accounting for over three-quarters of its oil exports. Hence, while the Strait of Hormuz closure stands to impact global oil markets, it also would prove counterproductive for Iran. Iran, which is already in a geopolitical conflict with Israel and the US, is likely to risk international military escalation with this key passage closure.
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Business Standard
7 hours ago
- Business
- Business Standard
Blocking of Strait of Hormuz may impact India's energy procurement: Experts
Any blocking or disruption of traffic through the Strait of Hormuz -- a narrow passage connecting the Persian Gulf to the Arabian Sea -- will have significant global and regional impact, including for India's energy security, strategic affairs experts said on Sunday. Following the US bombing of three major Iranian nuclear sites, Tehran has indicated that closing the Strait of Hormuz for shipping is one of the options on the table to pressure its adversaries. Nearly 30 percent of global oil and a third of the world's LNG (liquefied natural gas) passes through the strait daily and its closure would immediately reduce global supplies triggering a spike in prices, they said. The closure of the narrow passage would have significant global repercussions across energy markets and it will impact India's energy security as well, Dr Laxman Kumar Behera, Associate Professor at Special Centre for National Security Studies at the Jawaharlal Nehru University, told PTI. Behera said any disruption in the critical shipping lane will majorly impact India's crude oil import from Iraq and to an extent from Saudi Arabia. Captain D K Sharma (retd), a former Indian Navy spokesperson who closely follows developments in the Gulf region, said Iran's threat to block the Strait of Hormuz could lead to significant disruptions in global oil trade. Any disruption in shipping traffic could impact insurance premiums, causing costlier rerouting of oil shipments, he argued. "Oil prices are expected to surge due to the increased tensions in the region, with some analysts predicting prices to reach USD 80-USD 90 per barrel or even USD 100 per barrel if Iran responds with retaliatory measures," he noted. Sharma also said that the currencies of the countries in the region may experience significant volatility, and investors may look for other stable markets. According to a recent analysis by the International Energy Agency, even a brief disruption of passage through the Strait of Hormuz will have a significant impact on oil markets. "With geopolitical and economic uncertainties affecting oil producers and consumers alike, oil supply security remains high on the international energy policy agenda," it said. The US on Sunday morning bombed three major nuclear sites -- Fordow, Natanz and Isfahan -- in Iran, bringing itself into the Israel-Iran conflict Later, President Donald Trump said the Iranian nuclear sites were "totally obliterated". Behera said Iran will also face economic consequences if it shuts down the Hormuz strait as such a move will severely cripple Tehran's exports. Since the start of Iran's hostilities with Israel, Iranian officials have spoken about the possibility of shutting the Strait of Hormuz. Mohammad Javad Hosseini, the deputy chief of mission at the Iranian embassy, on Friday said closing the Strait of Hormuz is an option. "We have many things on the table, but it doesn't mean that we are going to do it now. It depends on the situation and how the other players want to go. If they want to solve the problem, definitely some of these things will be put aside," he said.
Time of India
8 hours ago
- Business
- Time of India
Blocking of Strait of Hormuz will impact India's energy procurement: Experts
Any blocking or disruption of traffic through the Strait of Hormuz -- a narrow passage connecting the Persian Gulf to the Arabian Sea -- will have significant global and regional impact, including for India's energy security, strategic affairs experts said on Sunday. Following the US bombing of three major Iranian nuclear sites, Tehran has indicated that closing the Strait of Hormuz for shipping is one of the options on the table to pressure its adversaries. Nearly 30 percent of global oil and a third of the world's LNG (liquefied natural gas) passes through the strait daily and its closure would immediately reduce global supplies triggering a spike in prices, they said. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like The Top 25 Most Beautiful Women In The World Articles Vally Undo The closure of the narrow passage would have significant global repercussions across energy markets and it will impact India's energy security as well, Dr Laxman Kumar Behera, Associate Professor at Special Centre for National Security Studies at the Jawaharlal Nehru University, told PTI. Behera said any disruption in the critical shipping lane will majorly impact India's crude oil import from Iraq and to an extent from Saudi Arabia. Live Events Captain D K Sharma (retd), a former Indian Navy spokesperson who closely follows developments in the Gulf region, said Iran's threat to block the Strait of Hormuz could lead to significant disruptions in global oil trade. Any disruption in shipping traffic could impact insurance premiums, causing costlier rerouting of oil shipments, he argued. "Oil prices are expected to surge due to the increased tensions in the region, with some analysts predicting prices to reach USD 80-USD 90 per barrel or even USD 100 per barrel if Iran responds with retaliatory measures," he noted. Sharma also said that the currencies of the countries in the region may experience significant volatility, and investors may look for other stable markets. According to a recent analysis by the International Energy Agency, even a brief disruption of passage through the Strait of Hormuz will have a significant impact on oil markets. "With geopolitical and economic uncertainties affecting oil producers and consumers alike, oil supply security remains high on the international energy policy agenda," it said. The US on Sunday morning bombed three major nuclear sites -- Fordow, Natanz and Isfahan -- in Iran, bringing itself into the Israel-Iran conflict Later, President Donald Trump said the Iranian nuclear sites were "totally obliterated". Behera said Iran will also face economic consequences if it shuts down the Hormuz strait as such a move will severely cripple Tehran's exports. Since the start of Iran's hostilities with Israel, Iranian officials have spoken about the possibility of shutting the Strait of Hormuz. Mohammad Javad Hosseini, the deputy chief of mission at the Iranian embassy, on Friday said closing the Strait of Hormuz is an option. "We have many things on the table, but it doesn't mean that we are going to do it now. It depends on the situation and how the other players want to go. If they want to solve the problem, definitely some of these things will be put aside," he said.
Hindustan Times
8 hours ago
- Business
- Hindustan Times
Blocking of Strait of Hormuz will impact India's energy procurement: Experts
New Delhi, Any blocking or disruption of traffic through the Strait of Hormuz a narrow passage connecting the Persian Gulf to the Arabian Sea will have significant global and regional impact, including for India's energy security, strategic affairs experts said on Sunday. Blocking of Strait of Hormuz will impact India's energy procurement: Experts Following the US bombing of three major Iranian nuclear sites, Tehran has indicated that closing the Strait of Hormuz for shipping is one of the options on the table to pressure its adversaries. Nearly 30 percent of global oil and a third of the world's LNG passes through the strait daily and its closure would immediately reduce global supplies triggering a spike in prices, they said. The closure of the narrow passage would have significant global repercussions across energy markets and it will impact India's energy security as well, Dr Laxman Kumar Behera, Associate Professor at Special Centre for National Security Studies at the Jawaharlal Nehru University, told PTI. Behera said any disruption in the critical shipping lane will majorly impact India's crude oil import from Iraq and to an extent from Saudi Arabia. Captain D K Sharma , a former Indian Navy spokesperson who closely follows developments in the Gulf region, said Iran's threat to block the Strait of Hormuz could lead to significant disruptions in global oil trade. Any disruption in shipping traffic could impact insurance premiums, causing costlier rerouting of oil shipments, he argued. "Oil prices are expected to surge due to the increased tensions in the region, with some analysts predicting prices to reach USD 80-USD 90 per barrel or even USD 100 per barrel if Iran responds with retaliatory measures," he noted. Sharma also said that the currencies of the countries in the region may experience significant volatility, and investors may look for other stable markets. According to a recent analysis by the International Energy Agency, even a brief disruption of passage through the Strait of Hormuz will have a significant impact on oil markets. "With geopolitical and economic uncertainties affecting oil producers and consumers alike, oil supply security remains high on the international energy policy agenda," it said. The US on Sunday morning bombed three major nuclear sites Fordow, Natanz and Isfahan in Iran, bringing itself into the Israel-Iran conflict Later, President Donald Trump said the Iranian nuclear sites were "totally obliterated". Behera said Iran will also face economic consequences if it shuts down the Hormuz strait as such a move will severely cripple Tehran's exports. Since the start of Iran's hostilities with Israel, Iranian officials have spoken about the possibility of shutting the Strait of Hormuz. Mohammad Javad Hosseini, the deputy chief of mission at the Iranian embassy, on Friday said closing the Strait of Hormuz is an option. "We have many things on the table, but it doesn't mean that we are going to do it now. It depends on the situation and how the other players want to go. If they want to solve the problem, definitely some of these things will be put aside," he said. This article was generated from an automated news agency feed without modifications to text.
