Indian state-run refiners are weighing a renewed shift toward Russian crude imports as escalating tensions involving Iran disrupt supply routes in the Middle East, according to a report by Bloomberg.
The crisis has impacted shipping movements through the Strait of Hormuz, a critical route that handles a significant share of India’s crude oil imports. With uncertainty over cargo flows, refiners and government officials have reportedly held discussions to assess alternative sourcing options in case disruptions persist.
Industry sources indicated that India may increase purchases of Russian oil cargoes currently positioned in the Indian Ocean and Arabian Sea. Russian crude had previously become a major component of India’s import basket following Western sanctions on Moscow, though buying patterns have fluctuated over time.
Officials are also evaluating the possibility of tapping into India’s strategic petroleum reserves and exploring additional supply from other producers. Discussions have included seeking higher volumes from Saudi Aramco, potentially routed through facilities such as the Red Sea port of Yanbu, which allows shipments to bypass Hormuz.
India imports a large portion of its crude requirements, with a substantial volume typically transiting through Hormuz under normal conditions. Any prolonged instability in the region could increase freight costs, strain supply chains, and add volatility to global oil prices.
While there has been no official announcement on immediate supply cuts, policymakers are closely monitoring developments to ensure domestic fuel availability and manage potential price pressures.
