Strait of Hormuz

The Strait of Hormuz is a maritime chokepoint connecting the Persian Gulf with the Gulf of Oman and onward to the Arabian Sea. At its narrowest it is only about 21 nautical miles wide, with two-mile-wide inbound and outbound shipping lanes separated by a buffer. The US Energy Information Administration and the International Energy Agency estimate that around one-fifth of global oil consumption and a quarter of global LNG cross this strait every day. For India the strait is existential: approximately 30% of crude oil imports and a large share of LPG and fertiliser feedstock pass through it, and Oman alone supplies about 46% of India's imported urea. Geopolitically, Iran can threaten — and during periodic crises has threatened — to close or disrupt traffic in the strait; the Iran-Israel '12-Day War' of June 2025 produced sharp spikes in tanker freight and war-risk insurance premia. India hedges this exposure through Strategic Petroleum Reserves at Visakhapatnam (1.33 MMT), Mangalore (1.5 MMT) and Padur (2.5 MMT), and by developing the Chabahar Port and the International North-South Transport Corridor (INSTC) as Hormuz alternatives.

• 1 Connects Persian Gulf to Gulf of Oman and Arabian Sea; about 21 nautical miles at narrowest.
• 2 Around 20% of global oil and 25% of global LNG transit the strait daily.
• 3 India routes about 30% of its crude imports through Hormuz.
• 4 Oman supplies roughly 46% of India's imported urea via Hormuz.
• 5 India's SPRs at Visakhapatnam, Mangalore and Padur cushion supply shocks.
• 6 Chabahar Port and INSTC are India's structural Hormuz hedges.

Persistent West Asian instability through 2025-26, including the 12-Day Iran-Israel War, is projected to push India's fertiliser subsidy bill to between Rs 1.71 lakh crore and Rs 1.9 lakh crore in FY 2026-27, with Hormuz-linked urea logistics a key driver.