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    India faces biggest impact of tensions in Strait of Hormuz: IEA

    Synopsis

    India is concerned about tension in West Asia because the country depends on imports for 80% of the oil it consumes.

    ET Bureau
    NEW DELHI: India faces the biggest impact of the current tensions in the Strait of Hormuz as it depends heavily on the region for its oil and gas supplies, said the International Energy Agency (IEA).

    Two-thirds of the oil and half the liquefied natural gas (LNG) India imports come from the strait between Iran and Oman, Fatih Birol, executive director of the IEA, said at a conference organised by the Council on Energy, Environment and Water (CEEW).

    Petroleum and natural gas minister Dharmendra Pradhan shared Birol’s concern, saying that the development in the Strait of Hormuz remains a worry for India’s energy plans.

    Eighteen million barrels of oil pass through the Strait of Hormuz every day, accounting for one-third of the global oil trade, said Birol. One-third of the world’s LNG trade also passes through the strait.

    “When oil prices skyrocket, it becomes dangerous for the economic growth of many countries around the world,” said Birol.

    On June 13, two oil tankers in the strait were damaged by explosions, an attack seen as a response to the US tightening its sanctions on Iran. The US blamed Iran for the attacks, which the latter denied.

    Since then, Indian ships passing through there have taken the assistance of the Indian Navy escort to safely pass through the waterway. On Thursday, an Iranian drone was destroyed by a US ship after it refused to back down, said US President Donald Trump.

    India is concerned about tension in West Asia because the country depends on imports for 80% of the oil it consumes.
    (Catch all the Business News, Breaking News Events and Latest News Updates on The Economic Times.)

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    2 Comments on this Story

    Gaurav D430 days ago
    america with trump has has gone fully mad,earliar they where just mad.whole world is facing problem only solution is just dump dollor as a reserve currency.for tht southe means oil has to be on this side.
    Vinod Patil430 days ago
    US is very selfish, it wants India n Iran to bend to get benefited itself. India also should strategically tackle this, after all it will affect Economic growth of India.
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