Another oil shock loading for India? How Red Sea disruptions may Russian crude supply
India is facing potential new oil supply disruptions as Houthi threats against Saudi Arabia threaten to choke off critical export routes. This follows previous energy security challenges caused by the closure of the Strait of Hormuz.
Why it matters
Energy security is a critical pillar of India's economy, and further supply shocks could lead to significant inflation and economic instability.
In March 2026, India was faced with an unprecedented oil supply and price shock. Four months from then, India has managed to successfully secure its crude supplies through a diversified procurement basket relying mainly on Russian crude to tide over the energy security situation.However, even as the Strait of Hormuz disruptions continue, India is now faced with the prospect of a fresh oil shock - and this time the impact may not be limited to Middle East supplies.Iran-backed Yemeni group, the Houthis, have threatened a maritime blockade on Saudi Arabia. What this essentially means is that Saudi Arabia’s crude oil exports are set to be hit. And India which gets a big portion of its crude imports from the Middle East country, is now staring at fresh supply disruptions amid Strait of Hormuz closure.
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