Emerging
Published Jun 19, 2026Updated Jun 191
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India Seen Making Slow Return to Mideast Oil as Hormuz Reopens
India’s state-run refiners have secured enough crude for two months and will slowly resume Middle East oil purchases even after the Strait of Hormuz reopens, prioritizing supply diversification and cost optimization.
Quick Facts
- secured enough crude for two months
- slow resumption of Middle East oil purchases
- prioritizing supply diversification and cost optimization
- India's state-run refiners
- two months
India’s state-run refiners have already secured enough crude for the next two months and are in no rush to resume purchases from the Middle East even if the Strait of Hormuz reopens to commercial traffic.
The cautious approach comes as global oil markets adjust to the easing of tensions around the strategic waterway, which had disrupted crude flows. Indian refiners, having built up inventories during the period of instability, are now prioritizing supply diversification and cost optimization over immediate resumption of Middle Eastern imports.
Industry analysts note that India’s strategic reserves and long-term contracts with alternative suppliers provide a buffer, allowing the country to negotiate better terms before returning to full-scale purchases from the region. The slow return signals a shift in India's energy procurement strategy, reducing its vulnerability to geopolitical disruptions in the Middle East.
While the reopening of the Strait of Hormuz is expected to eventually restore normal trade flows, Indian refiners are expected to phase in Middle Eastern crude gradually over the coming months, closely monitoring market conditions and securing favorable pricing.
Why This Matters
India's gradual return to Mideast oil purchases signals a strategic shift in energy procurement, reducing its vulnerability to future geopolitical disruptions in the Strait of Hormuz. For global oil markets, this could mean tempered demand from a major importer, potentially stabilizing prices. Indian refiners' cautious stance may also encourage other buyers to diversify supply sources, reshaping trade flows.
Timeline & Sources
Jun 19, 2026
WireStrait of Hormuz reopens to commercial traffic