‘Large volume of our supplies don't come through Hormuz': Hardeep Puri assures fuel stability amid Middle East tensions

As tensions continue to rise in the Middle East, raising the likelihood of Iran closing the Strait of Hormuz, India is closely monitoring global oil trends. Around one-fifth of the world's oil consumption passes through the Strait of Hormuz, which is situated between Iran and Oman. (Reuters)
Union minister for petroleum and natural gas, Hardeep Singh Puri, has reiterated that India has adequate oil supplies to meet its needs.
'We have been closely monitoring the evolving geopolitical situation in the Middle East since the past two weeks,' Puri said in a post X. The Union minister noted that India has 'diversified our supplies in the past few years and a large volume of our supplies do not come through the Strait of Hormuz now.'
Puri said that the nation's oil marketing companies have several weeks' worth of supply, adding that they 'continue to receive energy supplies from several routes.'
The Union minister assured that all necessary steps will be taken to ensure the stability of supplies of fuel to Indian citizens. ALSO READ | Iran hints at Strait of Hormuz closure. How will it impact Indian crude imports?
Last week, following the Israeli strikes on Iran, Puri asserted that India has enough energy supplies for the coming months. 'India's energy strategy is shaped by successfully navigating the trilemma of energy availability, affordability and sustainability,' he said, adding that, 'We have adequate energy supplies for the coming months.'
The brewing tensions over the closure of the Strait of Hormuz have led countries to think about the possible repercussions on oil prices. NDTV reported, citing sources, that the central government might considering reviewing the excise duty cuts on fuel if the crude oil price goes above $105 per barrel. Impact on India if Strait of Hormuz is closed
India, the world's third-largest oil importer and fourth biggest gas buyer, imports over 85 per cent of its crude oil needs and roughly half its natural gas requirement, a news agency PTI report said. Of these, over 40 per cent of the oil imports and half of the gas imports come from the Middle East.
However, the closure of the Strait of Hormuz, which is the passage of around one-fifth of the world's oil consumption, might impact India's energy sector and global oil prices. ALSO READ | Strait of Hormuz: Why the narrow waterway is at stake as Israel-Iran tensions rise
About 2 million barrels per day of crude oil out of India's total import of 5.5 million barrels per day transit through the Strait of Hormuz.
However, industry officials and analysts have reportedly said that India is not likely to lose sleep even if the Strait were shut down. This is because it has alternative sources, from Russia to the US to Brazil, already readily available to fill any void.
India's principal supplier of gas, Qatar, does not use the Strait of Hormuz for supplies to the nation, PTI reported. And other sources of liquefied natural gas (LNG) in Australia, Russia, and the US would also remain untouched by the narrow waterway's closure.
While India imports around 90 per cent of its crude oil, more than 40 per cent of those imports originate from Middle Eastern countries, such as Iraq, Saudi Arabia, the United Arab Emirates, and Kuwait, whose exports pass through the Strait of Hormuz.
However, in recent years, Russia has become India's largest supplier of crude oil, which is refined into fuels like petrol and diesel. In June, Indian refiners imported around 2 to 2.2 million barrels per day of Russian crude oil, the highest in the last two years.

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

Time of India

42 minutes ago

• Time of India

D-Street braces for 'risk-off' selloff

MUMBAI: Investors on the edge after an escalation in the West Asia conflict with most Dalal Street players expecting the Sensex to open lower on Monday. They also expect crude oil prices to spike, which in turn would put pressure on the rupee. On Sunday, after the US bombed three nuclear sites in Iran and the latter resolved to close the Strait of Hormuz through which about 20% of the world's crude oil and natural gas pass, market players said oil prices could spike soon. On Friday, as Dalal Street investors ignored the geopolitical tensions between Iran and Israel, the sensex recorded a four-digit points gain to close at 82,408 points. And Nifty on the NSE gained 319 points to close at 25,112 points. Globally, Brent was trading at above the $77/barrel level while WTI crude was around the $75 level. Both were trading at near their four-month high levels. Despite the global headwinds, India's economic fundamentals on the other hand could act as a balancing act to those negative factors, Kotak Mahindra Mutual Fund MD Nilesh Shah said. "Indian equity and rates market is like a man having average temperature with one leg in cold water and the other in hot water. Domestic factors support current valuation for long term investors expecting moderate returns. (However) global factors from (the US president Donald) Trump's policies to oil price/supply are boiling hot," he said. Shah said that investors need to keep a watch on the availability of oil as well as the price. "We have enough forex reserves to manage higher oil prices in double digits. (However) oil prices crossing triple digit or restricted supply will have an adverse impact on the market." Shah added that investors should use any market correction as an opportunity to accumulate while traders should remain on a cautious mode. The geopolitical uncertainty could also push up prices of gold as investors move to 'risk off' mode, meaning they sell risky assets like equities and move to haven assets like gold and govt bonds, market players said. A section of the market players believes that in case Iran doesn't react aggressively to the US's move to bomb its three nuclear sites, the markets may soon recover after a negative opening in Monday's early trade. One trader even pointed out that TA 35, the main stock market benchmark in Israel, was up more than 1% in Sunday's trading session, indicating investors in Israel had ignored the geopolitical tensions. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now

India Today

44 minutes ago

• India Today

US strikes damage Isfahan N-site, IAEA confirms; Iran vows to rebuild rapidly

The United Nations nuclear watchdog confirmed that underground entrances to tunnels at Iran's Isfahan nuclear site were damaged in the US bombings. The International Atomic Energy Agency (IAEA) released a statement confirming the extent of damage to Iran's major nuclear sites -- Fordow, Natanz, and Esfahan (Isfahan). According to IAEA chief Rafael Mariano Grossi, several parts of these facilities were hit during overnight airstrikes carried out by the United United States dropped 30,000-pound bombs on Iran's uranium enrichment sites. Meanwhile, Iran has declared that it has already started rebuilding the affected nuclear facilities and vowed to resume its nuclear work with even more strength, as per Iran's Atomic Energy had reportedly stored much of its highly enriched uranium underground at the Isfahan site. With Israel's strikes and the recent US attacks, damage to these sites has become a serious concern. IAEA CONFIRMS EXTENSIVE DAMAGE TO IRAN'S KEY NUCLEAR SITES In its official statement, the IAEA confirmed that Iran's nuclear sites at Fordow, Natanz, and Esfahan had all been affected. Director General Rafael Grossi said the Isfahan complex, which had already been hit by Israeli strikes earlier this month, suffered additional latest attacks early this morning damaged other buildings in Esfahan. In addition, we have established that entrances to underground tunnels at the site were impacted," Grossi added that some of the damaged buildings at the Esfahan site might have held nuclear the Fordow facility, built deep inside a mountain, was also targeted, the IAEA said it is difficult to determine how much internal damage occurred due to the underground location and the type of bombs used."It is clear that Fordow was also directly impacted, but the degree of damage inside the uranium enrichment halls can't be determined with certainty," Grossi Natanz facility, which had already faced extensive damage in past attacks, was also hit again with US the damage, Grossi stated that Iranian authorities had informed the agency that there had been no rise in radiation levels outside the sites."We need to try to go back to the negotiating table as soon as possible. We have to allow the IAEA inspectors to return. The IAEA is ready to play its indispensable role in this process. We have been talking to Iran, we have been talking to the United States. We have to work for peace," he SAYS NUCLEAR SITES ARE BEING REBUILT QUICKLYadvertisementIn response to the attacks, Iran's Atomic Energy Agency announced on Sunday that the damaged nuclear facilities are being rebuilt to Iranian state media, officials have promised that operations at these sites will resume soon and with greater capacity. The announcement appeared to signal Iran is not ready to back down at any cost in order to continue its nuclear programme amid international IAEA has warned that the ongoing conflict may prevent inspectors from properly verifying Iran's stockpile of more than 400 kilograms of highly enriched uranium."This would also enable the IAEA to resume its crucial verification activities in Iran, including of its stockpile of more than 400 kg of highly enriched uranium, which Agency inspectors last verified a few days before the military conflict began." Grossi InMust Watch

Mint

an hour ago

• Mint

US-Israel strikes on Iran: Netanyahu says ‘we are very, very close to completing the objectives'

Israeli Prime Minister Benjamin Netanyahu on Sunday (June 22) said Israel was nearing its strategic goals in Iran following a series of high-profile US-led airstrikes on Tehran's nuclear infrastructure. 'I have no doubt that this is a regime that wants to wipe us out, and that's why we embarked on this operation to eliminate the two concrete threats to our existence: the nuclear threat and the ballistic missile threat,' Netanyahu said, addressing reporters. 'We are moving step by step towards achieving these goals. We are very, very close to completing them.' He stressed that the campaign would end only when those objectives were met. 'We won't pursue our actions beyond what is needed to achieve them, but we also won't finish too soon,' he added. Netanyahu made it clear that Israel would avoid getting bogged down in prolonged conflict. 'We won't be dragged into a war of attrition but also won't end the campaign prematurely,' he said. He also revealed that Israeli intelligence had new insights: 'We have interesting intel on the location of Iran's 60% enriched uranium,' he said, suggesting further strikes could be imminent. Hours after the strikes, Netanyahu visited the Western Wall in Jerusalem to pray for US President Donald Trump, whose administration authorized the bombing of Iranian nuclear sites. In a video released by the Western Wall Heritage Foundation, Netanyahu is seen praying with his wife Sara and placing a handwritten note into the wall. 'Bless, protect and help the President of the United States, Donald Trump, who has taken it upon himself to drive out evil and darkness in the world,' he prayed. President Donald Trump, who authorised the strikes as part of Operation Midnight Hammer, defended the decision and warned Iran against retaliation. 'Iran's key nuclear enrichment facilities have been completely and totally obliterated. Iran, the bully of the Middle East, must now make peace,' Trump declared. He added a stark warning: 'There will either be peace, or there will be tragedy for Iran.' The Pentagon confirmed that B-2 bombers dropped 30,000-pound bunker-buster bombs on Iran's key nuclear facilities, including Fordow, Natanz, and Isfahan. While Iran and the IAEA said there was no radiation leak, the Pentagon said the facilities had suffered 'sustained, extremely severe damage and destruction.' Iranian President Masoud Pezeshkian warned, 'The Americans must receive a response to their aggression,' in remarks made to French President Emmanuel Macron. 'The warmongering and lawless administration in Washington is solely and fully responsible for the dangerous consequences and far-reaching implications of its act of aggression,' Araghchi said, adding that he would fly to Moscow to coordinate with Russia. Despite the aggressive strike, the Trump administration signaled openness to diplomacy. US Secretary of State Marco Rubio refrained from specifying whether the US would respond with military force if Iran attempted to close the Strait of Hormuz or if Iranian proxy groups targeted oil infrastructure. "I'm not going to take options away from the president, that's not something we're talking about right now in terms of being immediate." Rubio acknowledged that while such a move would impact the U.S., it would have far greater consequences globally—particularly for China. "That would be a suicidal move on [Iran's] part, because I think the whole world would come against them if they did that," Rubio said.