Meta Description: Discover everything about the Strait of Hormuz — its history, who controls it, its role in global trade, and how the Iran-US conflict is threatening India’s LPG supply. Explore practical solutions to this energy crisis.
Focus Keywords: Strait of Hormuz, Hormuz history, Iran US conflict LPG India, LPG supply India, India energy security, global oil trade
Introduction: A Waterway That Powers the World
Imagine a narrow corridor of water — just 33 kilometres wide at its narrowest point — through which nearly a third of the world’s entire oil supply passes every single day. That is the Strait of Hormuz. Nestled between Iran to the north and Oman and the United Arab Emirates to the south, this sliver of sea is arguably the most strategically critical chokepoint on the planet. For India, a rapidly growing economy that imports over 85% of its crude oil and a significant share of its Liquefied Petroleum Gas (LPG), what happens in these waters is not a distant geopolitical event — it directly affects the gas cylinder in every Indian home.
As tensions between Iran and the United States continue to simmer and, at times, boil over, the ripple effects on global energy markets are being felt from New York trading floors all the way to kitchens in Andhra Pradesh and Maharashtra. In this article, we explore the Strait of Hormuz — its rich history, its critical role in world trade, who controls it, and most importantly, what the ongoing Iran-US standoff means for India’s LPG security and what can be done about it.
What Is the Strait of Hormuz?
The Strait of Hormuz is a narrow sea passage connecting the Persian Gulf to the Gulf of Oman, and from there to the wider Arabian Sea and Indian Ocean. It is flanked by Iran on the northern shore and the Musandam Peninsula — a territory belonging to Oman — along with the UAE on the southern shore. The strait is approximately 90 kilometres long and narrows to about 33 kilometres at its slimmest point near the Omani enclave of Musandam.
Despite its modest dimensions, its geographic position makes it irreplaceable. All crude oil tankers, LNG carriers, and LPG ships exiting the Persian Gulf must pass through this single channel. There is simply no alternative maritime route. Countries like Saudi Arabia, the UAE, Iraq, Kuwait, Qatar, and Iran all rely on this strait to export their energy resources to the world.
According to the U.S. Energy Information Administration (EIA), approximately 20–21 million barrels of oil per day — roughly 20% of global oil consumption and about 30% of seaborne crude oil trade — flow through the Strait of Hormuz. For LPG specifically, nearly 20% of global supply passes through it, making it the single most important transit point for cooking gas used across Asia, including India.
A Brief History of the Strait of Hormuz
The name “Hormuz” is believed to be derived from “Ormuz,” an ancient kingdom that once flourished on the northern shores of the Persian Gulf. The region has been a centre of trade and military strategy for thousands of years.
Ancient and Medieval Periods: The strait served as a critical trade link between the civilisations of Mesopotamia (modern Iraq), the Indus Valley (modern India and Pakistan), and the ancient Arabian Peninsula as far back as 3000 BCE. The Kingdom of Hormuz, which emerged in the early medieval period, became immensely powerful by controlling the passage of goods — spices, silk, pearls, and horses — between the East and West.
Portuguese Dominance (1507–1622): Portuguese explorer Afonso de Albuquerque captured the island of Hormuz in 1507, establishing Iberian control over this vital waterway. The Portuguese used it to dominate the spice trade and exact tolls on all passing merchants. The famous island fort they built still stands as a UNESCO-recognised heritage structure.
Persian and British Rivalry: The Safavid Persian Empire, with British East India Company assistance, expelled the Portuguese in 1622. For the next three centuries, the British maintained significant influence over the Gulf region, using the strait as part of their strategic control of the Indian Ocean trade routes.
Post-World War II and the Oil Era: With the discovery of massive oil reserves in the Gulf throughout the 20th century, the Strait of Hormuz transformed from a spice trading route into the world’s most critical energy corridor. Its strategic value multiplied exponentially as global economies became dependent on Persian Gulf oil.
The Tanker War (1984–1988): During the Iran-Iraq War, both nations attacked oil tankers in the Gulf, in what became known as the “Tanker War.” This was the first modern demonstration of how conflict near the strait could destabilise global energy markets overnight.
Who Controls the Strait of Hormuz?
Technically, the Strait of Hormuz is an international waterway, governed by the United Nations Convention on the Law of the Sea (UNCLOS), which guarantees the right of “transit passage” for all vessels. However, the practical reality of control is far more complex.
Iran holds the most powerful position. With its northern coastline running the entire length of the strait and several strategically located islands — including Abu Musa and the Greater and Lesser Tunbs — Iran is the single nation most capable of threatening or disrupting passage through the waterway. Iran has repeatedly threatened to “close” the strait in response to Western economic sanctions or military threats.
The Omani coastline forms the southern corridor, and Oman maintains a generally neutral stance in regional politics, making it a stabilising presence.
The United States keeps a strong military presence in the region through the U.S. Fifth Fleet, headquartered in Bahrain. American naval power acts as a deterrent against any complete blockade of the strait.
The GCC nations — Saudi Arabia, UAE, Kuwait, Qatar, and Bahrain — collectively depend on the strait for their energy exports and maintain diplomatic and sometimes military alliances to keep it open.
In essence, no single country “owns” the Strait of Hormuz, but Iran wields unmatched leverage to disrupt it, while the United States provides the military muscle to deter total closure.
The Strait of Hormuz in Global Trade
The Strait of Hormuz is the lifeline of the global energy economy. Every year, thousands of supertankers and LPG carriers pass through its lanes, carrying:
- Crude Oil: The Gulf accounts for nearly 30% of global oil production. Countries like Japan, South Korea, China, India, and Europe are heavily dependent on this supply.
- Liquefied Natural Gas (LNG): Qatar, the world’s largest LNG exporter, ships nearly all of its product through the strait.
- LPG (Liquefied Petroleum Gas): Saudi Arabia and the UAE are major LPG exporters. India imports a massive share of its LPG cooking gas from these nations, all via the Strait of Hormuz.
- Petrochemicals and refined products: The Gulf’s vast refinery complexes export refined petroleum and chemicals globally through this corridor.
Any disruption — whether through conflict, blockade, or even a significant threat — immediately triggers a spike in global oil and gas prices, affects shipping insurance rates, and disrupts supply chains worldwide. Even a brief closure of the strait for 30 days could send oil prices past $200 per barrel, triggering a global economic shock.
The Iran-US Conflict: Background and Escalation
The tension between Iran and the United States is not a new development. It traces its roots to the 1979 Islamic Revolution, which overthrew the American-backed Shah of Iran and replaced him with Ayatollah Khomeini’s theocratic regime. What followed were decades of sanctions, proxy conflicts, and diplomatic standoffs.
Key escalation points include the U.S. withdrawal from the Iran Nuclear Deal (JCPOA) in 2018 under President Trump, the assassination of Iranian General Qasem Soleimani in January 2020, repeated drone and tanker incidents in the Gulf between 2019 and 2024, and Iran’s accelerated uranium enrichment programme, which has brought it dangerously close to nuclear capability.
As of 2025–2026, diplomatic channels remain strained. Iran continues to enrich uranium, the U.S. has maintained and tightened economic sanctions, and both sides have conducted military exercises near the strait. Iran-backed Houthi forces in Yemen have also attacked commercial shipping in the Red Sea, adding another chokepoint to the global shipping crisis and forcing many tankers to reroute — often through paths that increase cost and time significantly.
How the Iran-US Conflict Is Affecting India’s LPG Supply
India is the world’s second-largest LPG consumer, with over 300 million households dependent on cooking gas. The country imports nearly 50–55% of its LPG requirements, with the overwhelming majority sourced from Saudi Arabia (through Saudi Aramco’s subsidiary Aramco Trading), Qatar, and the UAE — all of which ship through the Strait of Hormuz.
The Direct Impact:
The Iran-US conflict has disrupted India’s LPG supply chain in multiple ways. Shipping insurance premiums for tankers crossing the Gulf have surged by over 300% since 2023. Many private shipping companies are now demanding war-risk surcharges, adding $2–5 per tonne to LPG freight costs. These costs are either absorbed by Indian Oil Marketing Companies (OMCs) like Indian Oil, BPCL, and HPCL, or passed on to consumers.
Price Volatility:
Geopolitical tensions in the strait cause LPG spot prices to spike sharply. India, which buys a significant portion of its LPG on spot markets, has faced sudden price surges that have strained the government’s LPG subsidy budget. The Pradhan Mantri Ujjwala Yojana scheme, which provides subsidised LPG to over 100 million poor households, has come under financial pressure as procurement costs rise.
Supply Delays and Rerouting:
In periods of acute tension — such as during Iranian tanker seizures in 2023 and the Houthi shipping attacks in the Red Sea in late 2023 and 2024 — several LPG carrier vessels rerouted around the Cape of Good Hope in Africa. This adds 12–15 extra days to delivery timelines and 25–30% to shipping costs, creating periodic shortages at Indian LPG terminals.
Iran’s Own Supply Cut Off:
India had previously sourced some crude oil and LPG-related petrochemicals from Iran. However, U.S. sanctions have effectively blocked Indian refiners from buying Iranian oil under threat of secondary sanctions. This has narrowed India’s supplier base, reducing its bargaining power and increasing dependency on Saudi and Qatari LPG — again, all routed through the Hormuz chokepoint.
Possible Solutions to India’s LPG Supply Vulnerability
India cannot afford to remain a passive victim of geopolitics it cannot control. A strategic, diversified, and long-term approach is essential.
1. Diversification of LPG Import Sources
India must aggressively develop LPG import partnerships with countries outside the Persian Gulf. The United States has emerged as a major LPG exporter following its shale gas revolution. American LPG — shipped from Gulf Coast terminals — can reach India via the Cape route without passing through Hormuz. India has already begun increasing U.S. LPG imports, but this must be accelerated with long-term supply contracts.
Australia, with its massive LNG and LPG reserves, is another viable alternative. India and Australia are already defence and trade partners, making energy cooperation a natural extension.
2. Strategic LPG Reserves
India currently has limited strategic petroleum reserves, primarily for crude oil. There is an urgent need to develop strategic LPG storage facilities at coastal locations — similar to how India maintains its Strategic Petroleum Reserve (SPR) at Visakhapatnam, Padur, and Mangaluru. A 30–60 day emergency LPG buffer would significantly reduce vulnerability to short-term supply disruptions.
3. Expansion of Domestic LPG and PNG Production
India must invest heavily in increasing domestic natural gas production and accelerating the rollout of Piped Natural Gas (PNG) in urban areas. A household connected to the city gas grid is insulated from LPG import shocks. The City Gas Distribution (CGD) network expansion must be treated as a national security priority, not merely a convenience project.
4. Renewable Energy Transition for Cooking
In the medium-to-long term, the most permanent solution is to reduce India’s dependence on imported cooking fuel altogether. Solar-powered induction cooktops, biogas plants, and electric cooking infrastructure — particularly in rural areas — can fundamentally alter the demand equation. Government schemes that subsidise electric cooking appliances and promote biogas digesters in agriculture-heavy states can reduce LPG import requirements significantly.
5. Diplomatic Engagement
India’s traditionally non-aligned foreign policy gives it a unique ability to maintain working relationships with both the United States and Iran. India should use this diplomatic capital to advocate for de-escalation in the Gulf, participate in multilateral maritime security frameworks, and negotiate protected “energy corridors” for civilian LPG tankers even in periods of heightened tension.
Conclusion
The Strait of Hormuz is far more than a geographic feature on a map — it is the jugular vein of the world’s energy economy, and India’s energy security is directly tied to its stability. The unresolved Iran-US conflict has introduced persistent uncertainty into one of the world’s most critical supply chains, and the consequences for Indian consumers — higher LPG prices, supply disruptions, and strained government finances — are real and growing.
India must treat this vulnerability as a national priority. Diversifying import sources, building strategic reserves, accelerating domestic gas infrastructure, and transitioning to clean cooking energy are not merely economic decisions — they are acts of strategic sovereignty. The kitchen flame that millions of Indian families depend on must never be held hostage to the distant fires of geopolitical conflict.
This article is intended for informational and educational purposes. All data referenced is based on publicly available information from energy research organisations, government reports, and international news sources.
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