Large part of our oil doesn’t come via Strait of Hormuz: Puri on reports of strait’s closure
The world is watching with bated breath as tensions between the United States and Iran escalate, with reports emerging that Iran may close the critical oil corridor, the Strait of Hormuz. The Strait, which connects the Persian Gulf to the Gulf of Oman, is a vital waterway through which a significant portion of the world’s oil supplies are transported. However, according to Union Minister Hardeep Singh Puri, India is well-prepared to handle any potential disruptions, with a large volume of its oil supplies not coming through the Strait of Hormuz.
Puri, who is the Minister of Petroleum and Natural Gas, and Steel, took to social media to allay concerns about the potential impact of a Strait of Hormuz closure on India’s oil supplies. “A large volume of our supplies do not come through the Strait of Hormuz now,” he tweeted, adding that “Our oil marketing companies have supplies of several weeks.”
The Minister’s statement was made in response to reports that Iran’s parliament has approved the closure of the Strait, in retaliation for US attacks on its nuclear sites. The Strait is a critical chokepoint for global oil trade, with over 20% of the world’s oil supplies passing through it. Any disruption to this vital waterway could have significant implications for the global economy.
India, which is one of the world’s largest oil importers, has been diversifying its oil supplies in recent years to reduce its dependence on the Strait of Hormuz. The country has been actively pursuing alternatives, including increasing imports from countries such as the United Arab Emirates, Saudi Arabia, and the United States.
India’s oil marketing companies, including Indian Oil Corporation, Hindustan Petroleum Corporation, and Bharat Petroleum Corporation, have also been stockpiling supplies in anticipation of potential disruptions. This strategic move is likely to help the country maintain its oil supplies, even if the Strait of Hormuz were to be closed.
The Indian government has been proactive in ensuring the country’s energy security, with Puri emphasizing that “We have a robust mechanism in place to ensure the availability of petroleum products to the country.” The Minister’s statement is likely to ease concerns among oil consumers and industries, which are major stakeholders in India’s economy.
The closure of the Strait of Hormuz would not only affect India’s oil supplies but also have significant implications for the global economy. The Strait is a critical artery for international trade, with oil tankers and cargo ships from around the world passing through it. A closure would lead to a significant disruption in global oil supplies, causing prices to skyrocket and potentially leading to economic instability.
In recent years, tensions in the Gulf region have been increasing, with the United States and Iran engaging in a series of diplomatic and military escalations. The situation has been further complicated by the introduction of sanctions by the United States against Iran, which has led to a significant reduction in Iran’s oil exports.
The Strait of Hormuz has been a flashpoint in the past, with Iran previously threatening to close the waterway in response to US and European Union sanctions. In 2019, the US Navy’s Fifth Fleet reported that Iranian Revolutionary Guard Corps boats had approached a US warship in the Strait, prompting concerns about the potential for conflict.
As the situation in the Gulf region continues to unfold, it is clear that India is well-prepared to handle any potential disruptions to its oil supplies. The country’s oil marketing companies have stockpiled supplies, and the government has taken steps to diversify its oil imports. While the closure of the Strait of Hormuz would undoubtedly have significant implications for the global economy, India’s proactive approach to energy security is likely to help the country maintain its oil supplies and minimize the impact of any potential disruptions.
News Source:
https://x.com/HardeepSPuri/status/1936816174236418202
