US-Israel Strikes on Iran Raise Risks for Strait of Hormuz and India's Energy Security

The US and Israel launched coordinated strikes on Iran on February 28, escalating tensions in the Middle East and raising concerns over disruptions to the Strait of Hormuz, a critical chokepoint for about 20% of global oil shipments and nearly half of India's crude imports. This has led to suspension of some oil shipments, increased freight and insurance costs, and potential impacts on India's energy security, trade routes, and export-import dynamics. While a prolonged blockade remains unlikely, the conflict has already caused volatility in oil prices and supply chains, with India exploring alternative routes and suppliers to mitigate risks. Additionally, threats to other maritime corridors like the Bab el-Mandeb Strait and disruptions to exports such as basmati rice and tea to Iran add to economic uncertainties for India amid the ongoing conflict.