Following escalating tensions in the Middle East, the United States has directly intervened in the ongoing conflict between Israel and Iran by launching airstrikes on Iranian nuclear facilities. In response to the US action, the Iranian parliament has reportedly approved a measure to close the Strait of Hormuz, a critical chokepoint for global oil supplies. These developments have triggered widespread concerns about regional stability and the potential impact on the global economy, particularly for countries like India that rely heavily on oil imports.
News outlets report that the US military conducted "massive precision strikes" on three key Iranian nuclear sites: Fordow, Natanz, and Isfahan. President Trump has declared the strikes a "spectacular military success," stating that the objective was to "obliterate" Iran's nuclear enrichment capacity and prevent the country from posing a nuclear threat. The strikes involved B-2 Spirit bombers deploying "bunker-buster" bombs, specifically GBU-57 Massive Ordnance Penetrators, designed to destroy deeply buried facilities like the Fordow plant.
In retaliation for the US strikes, the Iranian parliament has approved a measure to close the Strait of Hormuz, a narrow waterway connecting the Persian Gulf to the Arabian Sea and a vital route for global oil and gas shipments. The Strait is approximately 21 miles (33 kilometers) wide at its narrowest point. About one-fifth of the world's oil and gas supply flows through this strait. The final decision to close the Strait rests with Iran's Supreme National Security Council and Supreme Leader Ayatollah Ali Khamenei. Such a move would have far-reaching consequences for the global energy market.
The potential closure of the Strait of Hormuz has raised concerns in India, which relies on the waterway for a significant portion of its oil imports. India imports about 90 percent of its crude oil, with over 40 percent of those imports originating from Middle Eastern countries whose exports transit the Strait of Hormuz. Disruption to the Strait could lead to increased shipping costs, higher insurance premiums, and potential supply shortages, all of which would negatively impact India's economy.
Despite these concerns, experts believe that India is relatively well-positioned to weather the potential disruption. In recent years, India has diversified its sources of oil imports, with Russia emerging as a major supplier. Russian oil is logistically detached from the Strait of Hormuz, flowing via the Suez Canal, Cape of Good Hope, or the Pacific Ocean. In June 2025, India imported more oil from Russia than the combined volumes from Middle Eastern suppliers like Saudi Arabia and Iraq. Also, imports from the United States have risen.
India can also tap into alternative sources of oil from the US, West Africa, and Latin America, although these options may be more expensive. On the gas front, India's principal supplier, Qatar, does not use the Strait of Hormuz for supplies to India. India's other sources of liquefied natural gas (LNG) in Australia, Russia and the US would be untouched by any closure. India also possesses strategic oil reserves that can cover approximately nine to ten days of imports, providing a buffer against any immediate supply disruptions. The heightened tensions could have a near-term impact on prices, with oil prices likely to jump.
While a complete blockade of the Strait of Hormuz is considered unlikely due to the US naval presence and the potential economic consequences for Iran itself, the situation remains volatile. The closure would hurt not only exports from Saudi Arabia, the UAE, Kuwait and Qatar, but also Iran's exports. Some analysts predict that oil prices could exceed $90 per barrel if the conflict escalates, while others warn of even more extreme scenarios. The Indian government is closely monitoring the situation and has assured citizens that the country's energy supply remains stable. The government may also consider price subsidies to curb inflation if domestic prices spike, especially for diesel and LPG.
