India's energy security shaky if Hormuz and Bab-el-Mandeb straits blocked
Business
India's energy security is looking shaky right now, as a large share of its oil and gas imports passes through two narrow routes: the Strait of Hormuz and Bab-el-Mandeb.
If both get blocked, oil prices could shoot up to $130 to $135 a barrel, making fuel costlier and putting a big dent in India's trade balance.
War-risk insurance up to 1,000%
About 40% of India's crude oil and much of its LNG come through the Strait of Hormuz. Ongoing conflicts have already pushed war-risk insurance up by up to 1,000%, adding extra costs.
Industries like aviation and fertilizers could see prices spike, while smaller companies (especially those dealing with perishable goods) might struggle most with rising expenses and delays.