India Seeks Insurance Mechanism for Oil Tankers Amid Persian Gulf Risks

India is in discussions with the United States to establish a proposed insurance mechanism for oil tankers and other vessels passing through the Strait of Hormuz, according to Jin10. This move comes as India faces increasing risks, with approximately 40% of its crude oil imports traversing the narrow Persian Gulf route. The Mangalore Refinery and Petrochemicals Limited, a subsidiary of the state-owned Oil and Natural Gas Corporation, has shut down a crude distillation unit due to a shortage of raw materials. In response to the current situation, Indian officials are negotiating with global state-owned oil companies and traders to procure crude oil and liquefied petroleum gas from international inventories that do not pass through the Strait of Hormuz. Despite setbacks, the official noted that crude and refined oil inventories remain at comfortable levels, and there is no immediate need to halt fuel exports.