India Hits Record Russian Oil Imports Amid Hormuz Crisis

The Government of India shifted its energy security strategy toward resilience after a conflict between the United States, Israel, and Iran led to a nearly 120-day blockade of the Strait of Hormuz starting February 28, 2026. To mitigate the loss of Gulf supplies, India aggressively diversified its procurement, resulting in record-breaking imports of Russian crude oil in June 2026, reaching approximately 2.7 million barrels per day and accounting for over 50% of the country's total oil imports.

While crude imports remained relatively resilient, liquefied petroleum gas (LPG) was severely impacted, as 90% of India's LPG typically flows through the strait. In response, India pivoted to the United States, which became its top LPG and LNG supplier between March and May 2026. To prevent domestic shortages, the government implemented demand curbs, such as extending cylinder booking intervals from 25 to 45 days, while Reliance Industries increased domestic LPG production four-fold.

Diplomatic efforts, including the Lake Lucerne Summit in Switzerland and a June 17 memorandum of understanding, led to a fragile ceasefire and the gradual reopening of the waterway. However, Iran briefly closed the strait again on June 20, citing ceasefire violations by Israel. Despite the expiration of a U.S. sanctions waiver on Russian oil on June 17, Indian refiners continued to favor Russian barrels due to competitive discounts. To bolster long-term security, India tasked the Oil and Natural Gas Corporation with developing a new 1.75 million metric tonne underground storage cavern in Mangaluru.