India warns escalating West Asia tensions could threaten oil supply routes

Union minister Hardeep Singh Puri told the Public Affairs Forum of India that while India has managed one outlet West Asia crisis, a further escalation between the United States and Iran could close vital maritime chokepoints such as the Strait of Hormuz and Bab-el-Mandeb, creating supply challenges. He emphasized that worldwide crude production of roughly 102 million barrels per day still outstrips demand of 94-95 million bpd, and that India’s 267 mtpa refining capacity has insulated the market so far.

The minister outlined plans to expand capacity to 320 mtpa by 2030 and noted interest from Saudi Arabia and the United Arab Emirates in investing in new Indian refineries, provided they see returns. Despite export bans from Russia and China, India continues to ship about 1 million barrels of refined products under contractual commitments. Puri also clarified that the government will not raise ethanol-petrol blending beyond one outlet 20 % limit. He concluded that any further deterioration of the crisis could test these safeguards.