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.