Saudi Arabia has emerged as a key player in safeguarding India’s oil supply resilience. As geopolitical tensions rise near the Strait of Hormuz, Riyadh is helping India avoid major crude disruptions.
India relies heavily on the Middle East for oil. Around 35% of its crude imports, about 2 million barrels per day, pass through the Strait of Hormuz. That chokepoint faces growing risks due to Iran’s threats after recent US airstrikes on its nuclear sites.
In response, Saudi Arabia offers India a critical advantage. Through the Petroline-Yanbu corridor, the Kingdom can ship crude via the Red Sea instead of Hormuz. This route helps ensure continuous supply even during heightened regional conflict.
India imports 18–20% of its oil from Saudi Arabia. A large portion of that supply can now avoid the unstable Hormuz route. As a result, Saudi Arabia directly boosts India’s oil supply resilience.
A report from Yes Securities confirms this. It says Saudi’s diverse infrastructure limits the risk of supply shocks. Although freight rates may rise, short-term delays remain manageable.
India’s 90-day strategic crude reserves offer further protection. Even if brief disruptions occur, India will have enough time to adjust. Saudi Arabia’s support gives Indian refiners confidence to weather potential crises.
Meanwhile, India’s oil strategy continues to evolve. The country is buying more crude from Russia, the US, and Latin America. These flows do not rely on Hormuz. However, Saudi Arabia remains India’s most stable Gulf supplier.
While Iran may threaten closure, experts say a full blockade is unlikely. Iran’s own exports pass through Hormuz, and any move would isolate it diplomatically.
Still, short-lived disruptions could impact global oil flows. Tanker availability is already tightening, especially in the Gulf region. Risk premiums in crude markets may rise, but long-term supply looks secure.
Saudi Arabia plays a leading role in maintaining India’s oil supply resilience. Its ability to reroute exports through the Red Sea gives India a reliable shield against regional instability.
