India Can Withstand Short-Term Hormuz Disruption: Hardeep Puri

New Delhi, Jun 9 (KNN) India has sufficient energy reserves to withstand a short-term closure of the Strait of Hormuz, but a prolonged conflict involving Iran extending into early 2027 could tip the global economy into a depression, Union Petroleum and Natural Gas Minister Hardeep Singh Puri warned on Monday.

Speaking to CNN-News18, Puri said India currently holds 76–80 days' worth of crude oil, natural gas, and LPG stocks — well above his stated comfort threshold of 60 days for each. 

"What happens if Hormuz remains closed for another 30 days? We all have domestic situations, we have stocks … my comfort point used to be 60-60-60 which means 60 days of crude oil, natural gas and LPG – which I do have; I would say that’s comfortable" he said.

The minister cautioned that the calculus would change dramatically if the conflict were to persist for several months. 

"Recently someone was discussing what is the worst-case scenario in the Iran war. Supposing the crisis goes on till March 31, 2027. I replied: ‘Wait a minute, then we are in a totally different ball game. That would be global depression’," he said.

The Strait of Hormuz, through which roughly one-fifth of the world's oil passed before the conflict, has seen flows of oil and liquefied natural gas severely constrained following the US-Israeli military campaign against Iran. Some tanker movements have resumed, but the route remains significantly disrupted.

Puri also flagged the risk of the conflict spreading beyond the Gulf region. "It may remain a conflict not confined to that theatre… you could have problems elsewhere. Maybe some other theatre starts off. That would be worrying," he said.

Puri noted that India has recorded one of the lowest increases in domestic fuel prices globally, ranking second only to Japan among 193 countries in terms of the smallest rise.

(KNN Bureau)