India is adjusting its energy security focus from scale to resilience in response to disruptions in the Strait of Hormuz, according to a report by S&P Global Energy. Despite the closure of the Strait affecting 17% of global LNG supply, India, as the fourth-largest LNG buyer, managed to mitigate the impact by diversifying its sources to countries like Oman, the United States, Nigeria, and Angola. This diversification helped keep imports down by only 5% and 2% year-on-year in April and May 2026, respectively.
Johan Utama, Principal Research Analyst at S&P Global Energy, mentioned that India is likely to continue its diversified LNG sourcing to counter future disruptions, potentially influencing its long-term sourcing strategies. The report also highlighted that rerouting through the Red Sea and increased ship-to-ship transfers east of Hormuz aided in the rebound of Middle East crude exports to over 10 million barrels per day in June.
Benjamin Tang, Director and Global Head of Liquid Bulk, Commodities at Sea, S&P Global Energy, emphasized the adaptability of both producers and consumers in recent months. The industry’s ability to reroute supply, optimize logistics, and secure alternative barrels has helped mitigate potential severe disruptions in global energy markets.
Nick Sharma, Executive Director of Upstream Energy at S&P Global Energy, noted a clear directional shift in the global and Indian upstream sectors towards resilience in the near term. The focus is now on access to stable resources, accelerated project timelines, and diversified supply portfolios rather than just scale or cost optimization.
A recent report highlighted India’s successful navigation through a turbulent quarter of geopolitical shocks. Factors like the US-Iran peace deal and oil trading around $70-$80 per barrel are expected to ease inflation, support the rupee, reduce the import bill, and benefit rate-sensitive and oil-consuming sectors.
