New Delhi (Gurpreet Singh): The Indian economy is facing a critical strategic challenge as global oil prices surged nearly 10 per cent on Sunday, March 1, 2026, following a dramatic military escalation in West Asia. Brent crude jumped toward $80 a barrel in over-the-counter trading after joint US and Israeli strikes on Iranian leadership prompted Tehran to move toward shutting the Strait of Hormuz. This narrow maritime corridor is the primary artery for nearly one-fifth of global oil and gas supplies, and any prolonged blockage threatens to drive prices toward the $100 mark, significantly straining import-dependent nations.
The crisis acquired a direct Indian dimension following reports from Oman’s Maritime Security Centre that the oil tanker Skylight was targeted near Khasab Port. Of the 20 crew members evacuated during a coordinated rescue operation, 15 are Indian nationals, four of whom sustained injuries and are currently receiving medical treatment. This incident has heightened maritime security concerns for Indian vessels navigating the Persian Gulf, where a large portion of India’s energy imports from Iraq, Saudi Arabia, and the UAE must transit.
Government officials in New Delhi have moved to calm domestic markets, asserting that India faces no immediate threat to oil availability. Current strategic petroleum reserves are sufficient for approximately 10 days of consumption, supplemented by refined fuel stocks covering another five to seven days. However, energy economists warn that India’s vulnerability remains high, as the country imports 88 per cent of its crude oil and nearly half of its natural gas. More critically, almost all of India’s Liquefied Petroleum Gas (LPG) imports—essential for household cooking and fertilizers—pass through the Hormuz passage.
While India is exploring a “Russia pivot” and alternative sourcing from outside the Gulf region to recalibrate procurement, the International Energy Agency (IEA) continues to monitor the situation closely. Although OPEC+ members have reaffirmed their commitment to market stability and agreed to adjust production levels starting in April, the immediate “geopolitical risk premium” is already driving up freight charges and insurance premiums. For India, the unfolding conflict underscores an urgent need to expand strategic reserves and enhance maritime preparedness as regional instability intersects with national energy security.
