Brent crude increased $1.1, or 1.4%, to $82.52 a barrel on Wednesday after closing Tuesday at its highest level since January 2025 as mounting tensions in West Asia continued to disrupt supply sentiment. US West Texas Intermediate (WTI) crude settled at its highest level since June before rising 40 cents, or 0.5%, to $74.96.
US President Donald Trump’s suggestion that the US Navy could escort ships through the Strait of Hormuz, one of the world’s most significant energy chokepoints and a vital supply route for India’s crude imports, slowed the rally’s pace. The rise occurred after US-Israeli strikes on Iran disrupted supplies.
India has been keeping a careful eye on the issue and investigating alternate supplies of crude while the conflict has continued.
According to an industry source cited by Reuters, Russia is prepared to reroute oil to India in order to compensate for supply interruptions in West Asia. Approximately 9.5 million barrels of Russian crude are in vessels close to Indian waters and may arrive in a matter of weeks.
The corridor continues to be strategically important for India, one of the biggest importers of oil in the world. Currently, the nation imports over 89% of the crude oil needed for domestic processing, making it extremely vulnerable to changes in the world’s oil prices and geopolitical events.
About 40% of India’s imports of crude oil pass through the Strait of Hormuz, according to a recent CareEdge Ratings analysis, underscoring the nation’s reliance on Gulf supply routes.
West Asia accounted for 46.9% of India’s oil imports from April to January of FY26, followed by Eurasia at 34.6%, with lower amounts coming from North America, Africa, and South America, according to data cited in the study.
A number of Indian economic sectors may be under operational strain in addition to macroeconomic indicators. Higher raw material costs, higher logistics and insurance costs, and greater working capital requirements can put pressure on the profitability of industries, including aircraft, chemicals, paints, tires, and logistics that rely significantly on petroleum-based inputs.
