India Weighs Disruption Scenarios In Strait Of Hormuz, Prepares Backup Plans

Last Updated:June 20, 2025, 23:40 IST

Commerce Secretary meets officials and exporters as Iran Israel conflict threatens global oil chokepoint.

Oil tankers pass through the Strait of Hormuz. (IMAGE: REUTERS)

The government is well prepared as far as the possibility of the closure of the critical trade route of Strait of Hormuz is concerned.

This narrow stretch of sea might seem far from India but what happens there can directly impact your fuel bill, business and even stock market investments.

The Strait of Hormuz is located between Iran to the north and Oman and the United Arab Emirates (UAE) to the south. It connects the Persian Gulf to the Gulf of Oman and then to the Arabian Sea.

In view of the fact that trade could be affected or the stakeholders and exporters may have to look for new routes which need not be cost effective the commerce ministry held a meeting with the stakeholders.

Sources say that the Commerce Secretary Sunil Barthwal held a meeting with concerned stakeholders and departments to discuss the impact of the Iran Israel conflict on India’s trade and the actions needed to normalise it.

The participants were informed that the situation in the Strait of Hormuz is at present stable, but nothing was being left to chance. The ship reporting system has been put in place to monitor any incidents. The freight and insurance rates are also being closely monitored.

Apart from this the Commerce Secretary also stressed on the need to assess the evolving situation and its impact on Indian EXIM trade. He also highlighted the importance of exploring all possible alternatives in response to the situation.

Sources said that India is also actively exploring alternative crude supply routes beyond the Persian Gulf to avoid short term disruptions if geopolitical tensions worsen. If implemented these decisions could impact major fuel importing nations from Singapore to the US. India is one of the largest exporters of petroleum products. In a worst-case scenario involving the closure of Hormuz government sources said these exports could be curtailed to maintain India’s internal reserves and also to ensure we don’t fall short of oil supplies.

The government at the meeting today was optimistic of the fact that in the last 50 years despite crisis the Strait has never closed down. And with China using this route in a big way and extensively Iran may not be keen to close the Strait. But the Commerce Ministry is taking no chances and is closely monitoring the situation.

Pallavi Ghosh

Pallavi Ghosh has covered politics and Parliament for 15 years, and has reported extensively on Congress, UPA-I and UPA-II, and has now included the Finance Ministry and Niti Aayog in her reportage. She has als...Read More

Pallavi Ghosh has covered politics and Parliament for 15 years, and has reported extensively on Congress, UPA-I and UPA-II, and has now included the Finance Ministry and Niti Aayog in her reportage. She has als...

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