Gulf Tensions Disrupt India's Energy Supplies and Remittances

India is facing significant disruptions in its energy supplies due to escalating tensions in the Gulf region. According to NS3.AI, Brent crude prices have surged above $80 per barrel, and 40–50% of India's oil imports through the Strait of Hormuz have been largely halted. Additionally, QatarEnergy's declaration of force majeure has affected supplies that previously accounted for nearly 39% of India's LNG imports. India's strategic reserves, which hold approximately 100 million barrels, are estimated to cover only 40–45 days of supply reliant on the Strait of Hormuz. This situation poses a substantial challenge to the country's energy security. The tensions also threaten remittance flows from the 9–10 million Indian workers residing in Gulf countries. These workers contribute about 38% of India's total remittances, and any disruption could have significant economic implications for India.