<h2>Overview</h2> <p>The ongoing <span class="key-term" data-definition="Armed conflict between Russia and Ukraine that began in 2022, affecting global energy markets and supply chains (GS3: Economy)">Russia-Ukraine war</span> continues to strain the world economy. Simultaneously, a partial blockade of the <span class="key-term" data-definition="Strategic waterway between the Persian Gulf and the Gulf of Oman; about one‑third of global oil passes through it (GS3: Economy)">Strait of Hormuz</span> has curtailed the flow of crude oil, natural gas and fertilisers. Although a temporary cease‑fire lowered <span class="key-term" data-definition="International benchmark for oil prices, derived from North Sea crude (GS3: Economy)">Brent crude</span> from **$109.3** to **$95** per barrel, supply‑chain disruptions are expected to linger.</p> <h3>Key Developments</h3> <ul> <li>Partial blockage of the Strait of Hormuz restricts passage of petroleum products and other goods.</li> <li>Brent crude price fell to **$95**/barrel after a cease‑fire, down from **$109.3** on 7‑8 April 2026.</li> <li>India now imports crude oil from **41** source countries, reflecting a strategic diversification.</li> <li>India’s reliance on imported crude oil has risen to **~90 %**, underscoring vulnerability to external shocks.</li> </ul> <h3>Important Facts</h3> <p>India’s import basket includes crude from the Middle East, Africa, the Americas and increasingly from non‑traditional suppliers such as the United States and Brazil. The surge in <span class="key-term" data-definition="Chemical compounds containing nitrogen and phosphorus, essential for agricultural productivity; their trade is linked to energy markets (GS3: Economy)">fertilisers</span> imports mirrors the same supply‑chain stress, as many fertiliser plants rely on natural‑gas‑based ammonia production.</p> <h3>UPSC Relevance</h3> <p>Understanding the geopolitics of energy corridors (e.g., Strait of Hormuz) is crucial for GS III questions on international trade, energy security and price volatility. The shift in India’s import strategy illustrates policy responses to external shocks, a topic frequently examined in GS II (foreign policy) and GS III (economy). Moreover, the price movement of Brent crude impacts inflation, fiscal balances and balance‑of‑payments—core areas of the UPSC syllabus.</p> <h3>Way Forward</h3> <p>To mitigate future disruptions, India could:</p> <ul> <li>Expand strategic petroleum reserves and diversify logistics routes.</li> <li>Invest in domestic refining capacity and alternative energy sources.</li> <li>Strengthen diplomatic engagement with Gulf states to ensure safe passage through the Strait.</li> <li>Promote circular economy practices in fertiliser use to reduce dependence on imported natural gas.</li> </ul> <p>These steps would enhance energy security, stabilise domestic prices and align with the nation’s long‑term sustainable development goals.</p>