Middle East Tensions Threaten Global, Indian LPG and Oil Supplies

Amid escalating tensions in the Middle East following U.S. strikes on Iran’s nuclear sites, concerns have intensified over disruptions to global energy supplies, particularly affecting countries like India and China. India relies heavily on West Asia for about two-thirds of its liquefied petroleum gas (LPG) imports and roughly 40% of its oil imports transit through the Strait of Hormuz, a critical but vulnerable chokepoint that Iran has threatened to close, potentially jeopardizing India's energy security. Despite these risks, India’s Oil Minister Hardeep Singh Puri highlighted the country's diversified oil supply sources, including Russia, the U.S., and Brazil, enabling it to mitigate the impact of any supply disruptions through alternative routes and reserves. China, a major buyer of Iranian oil, continues to import approximately 1.6 million barrels per day through informal channels, viewing the Middle East conflict as a threat to its energy security and geopolitical interests as it expands its international infrastructure beyond Western influence. Iran’s potential closure of the Strait of Hormuz, which handles nearly 20% of global oil exports, could disrupt energy markets worldwide, with the U.S. and its allies increasing their military involvement. Efforts by Gulf countries like the UAE and Saudi Arabia to develop pipeline alternatives underscore the strategic importance and vulnerability of this critical maritime passage.