India currently has enough crude oil and refined petroleum products to meet domestic demand for roughly 50 days, according to government officials. The reserve includes around 25 days of crude oil and another 25 days of refined fuels such as petrol and diesel. Authorities also said there is no immediate proposal to increase retail fuel prices.

At the same time, officials are actively exploring additional sourcing options for crude oil, liquefied petroleum gas (LPG) and liquefied natural gas (LNG) as geopolitical tensions in the Middle East continue to intensify.

Iran Claims Strait of Hormuz Shut

Iran’s Islamic Revolutionary Guard Corps (IRGC) announced on Monday that the Strait of Hormuz has been closed to maritime traffic. Iranian state media quoted the force as warning that any ship attempting to cross the strategic waterway would face severe retaliation, including the possibility of being set on fire.

The statement signals a major escalation in the confrontation involving Iran on one side and the United States and Israel on the other.

Military Escalation in the Region

Hostilities intensified after the US and Israel expanded air operations against Iranian targets on Monday. Israel also launched strikes in Lebanon during the same period.

In retaliation, Iran reportedly attacked energy-related infrastructure in Gulf countries and targeted vessels operating near the Strait of Hormuz. The developments have increased the risks associated with maritime transport in the region.

As a result, several shipping companies have begun avoiding the route, while insurance providers have withdrawn coverage for ships operating in the area, making it more difficult for tankers and cargo vessels to pass through the narrow corridor.

Oil Markets React

Concerns about potential disruptions to Middle Eastern supply pushed global oil prices higher for the third consecutive trading session.

Brent crude was trading at about $79.44 per barrel early Tuesday, up roughly $1.70 or 2.2%. A day earlier it had surged to $82.37 — the highest level since January 2025 — before retreating slightly while still posting a strong gain.

US benchmark West Texas Intermediate (WTI) crude also climbed, rising $1.17 or about 1.6% to $72.40 per barrel. In the previous session it had touched its highest point since June 2025.

Shipping costs for energy cargoes have also risen sharply as traders factor in the growing security risks.

Government Reassures Citizens

The Indian government has reassured the public that the country’s energy supply situation remains stable and closely monitored.

Petroleum and Natural Gas Minister Hardeep Singh Puri said India is prepared to handle short-term supply disruptions linked to the evolving geopolitical tensions.

India is currently the world’s third-largest importer of crude oil, the fourth-largest refining hub and the fifth-largest exporter of petroleum products. Officials said the country maintains sufficient stocks of crude oil and key fuels such as petrol, diesel and aviation turbine fuel (ATF).

Over the past several years, India has expanded its crude procurement network to reduce reliance on any single route. Many supplies are now transported through channels that bypass the Strait of Hormuz, lowering exposure to potential disruptions.

To maintain constant oversight, the Petroleum Ministry has established a round-the-clock monitoring centre that tracks fuel availability and stock levels nationwide. Officials described the current inventory situation as “comfortable.”

Authorities emphasised that protecting consumers remains a priority. While fuel prices remain unchanged for now, future decisions will depend largely on how the situation around the Strait of Hormuz evolves in the coming days.