- By Shubham Bajpai
- Tue, 19 May 2026 09:30 PM (IST)
- Source:JND
The conflict that erupted in the Middle East on February 28, with Israel and the United States' joint attacks on Iran, has disrupted the global energy supplies.
Iran has effectively closed the Strait of Hormuz with missiles, landmines, and attacks on ships. The strait was further fortified with a US naval blockade.
India, which relies on imports for 90 per cent of its crude oil needs, is weathering the crisis better than most. India lacks large strategic petroleum reserves compared to countries like the US, China, and Japan, but its diversification strategy and strong ties with Russia have made it possible.
60 days of stock with the government
According to the government, India has approximately 60 days of petroleum supplies in various forms, including strategic reserves. Despite the disruption of 20 per cent of the world's crude oil supply, which passes through Hormuz, during the two and a half months of the war, India has met its needs. The question arises: where is India getting its oil from?
Major change in import strategy
According to Sumit Ritolia, manager of modelling and refining at Kpler, India's crude oil import strategy has undergone several changes since March 2026. The disruption at the Strait of Hormuz has reduced supplies from the Middle East and increased logistics risks. Indian refiners have increasingly turned to sources beyond the Atlantic Basin and Hormuz.
Lower supplies from Iraq and the Gulf countries were offset by increased purchases from the US, Brazil, West Africa, and Venezuela. This isn't replacing any one source, but rather a comprehensive restructuring of crude oil blends, taking into account availability, refinery compatibility, transportation costs, and sanctions.
"Refiners have become more likely buyers of Russian and Atlantic Basin oil, and where available, they are also buying Saudi and UAE grades that were previously overlooked," Ritolia said.
Russian oil: the backbone of supplies
Russia has remained the dominant source of India's crude oil imports since the 2022 Ukraine war. Trump administration sanctions led to a slight reduction from December 2025 to February 2026, but it still remained the biggest source. Russian supplies returned to previous highs with the start of the US-Iran war.
This time, oil is being purchased at a premium because global prices are high. The Trump administration granted a temporary exemption for Russian oil by sea to stabilise global prices, which has been revised twice.
India clarified that its purchase decision was based on energy security and economics. Purchases from companies like Rosneft and Lukoil were economically beneficial. Russian imports reached 1.9-2.0 million barrels per day (MBD) in March, according to Kpler data.
This level remained around 1.9 Mbd in May. Since the war began, Russia has supplied more than 140 million barrels of oil to India. Russian oil arriving via the Baltic, Black Sea, or Pacific routes is completely protected from the Strait of Hormuz risk.
ALSO READ: US Rejects Temporary Oil Sanctions Waiver For Tehran, Calls Iranian Media Reports ‘False’
Alternative supply routes to the Middle East
India's total crude oil imports fell to 4.4 mbpd in April, compared to a normal level of 5.2 mbpd. Imports from Iraq fell to almost zero.
Saudi, UAE pipelines key route: Supplies also came from Saudi Arabia (0.65-0.70 mbpd), the UAE (0.60-0.62 mbpd), Venezuela, Brazil, and Iran. Middle Eastern oil is being shipped via the Saudi East-West Pipeline (Yanbu, Red Sea) and the UAE's Habshan-Fujairah Pipeline. Although they add 4-10 days and increase transportation costs.
Venezuela: Venezuelan supplies, which had been halted by sanctions, resumed and shot up to place the country among top 5 sources after the US-Iran war. Ritolia said Venezuelan grades are attractive to India's sophisticated refiners. They balance the light oil blend and boost middle distillate production.