India is in discussions with the United States to secure marine insurance cover for vessels transporting oil from the Middle East, as New Delhi seeks to safeguard energy imports amid rising tensions in the Persian Gulf.
A government official said the move is aimed at protecting Indian buyers from potential supply disruptions caused by the ongoing crisis around the Strait of Hormuz, a critical maritime corridor between Iran and Oman through which nearly one-fifth of the world’s oil and gas supplies pass.
US President Donald Trump has directed the U.S. International Development Finance Corporation to provide political risk insurance and financial guarantees for maritime trade in the Gulf region. He also indicated that the United States Navy could begin escorting commercial vessels through the Strait to ensure safe passage.
“So far we are comfortable,” the official said, adding that the oil ministry is in talks with major producers and global traders to secure supplies of crude oil, liquefied petroleum gas (LPG), and liquefied natural gas (LNG).
India, the world’s third-largest oil importer, relies heavily on the Middle East, which accounts for about 40 per cent of its crude oil imports and nearly 85–90 per cent of LPG supplies.
Officials said India is exploring purchases from multiple sources, including Russia, to replenish crude stocks. Indian refiners had earlier reduced Russian oil imports as New Delhi sought to advance a trade agreement with Washington. At the same time, India has already increased imports of crude oil and LPG from the United States.
Speaking at the Raisina Dialogue in New Delhi, Christopher Landau, US Deputy Secretary of State, said Washington was ready to work with India to ensure stable energy supplies.
“We are an energy-rich country, and we want to cooperate with India to ensure its energy needs are met both in the short term and the long term,” he said.
Meanwhile, supply disruptions have begun affecting India’s energy sector. Mangalore Refinery and Petrochemicals Ltd has suspended refined fuel exports and shut down some units due to reduced availability of crude supplies. Several Indian companies have also cut gas supplies to industries after production was halted by Qatar, India’s largest LNG supplier.
India currently consumes about 195 million standard cubic metres per day (mmscmd) of natural gas, with nearly half met through imports. Officials estimate that around 60 mmscmd of gas is currently unavailable due to the closure of the Strait of Hormuz and force majeure declared by Qatar.
To bridge the gap, India is negotiating with suppliers including Sonatrach of Algeria and Abu Dhabi National Oil Company, while also engaging global traders such as TotalEnergies, Vitol, and Trafigura.
Union Oil Minister Hardeep Singh Puri has also held discussions with the International Energy Agency and the Organization of the Petroleum Exporting Countries to review the global oil market situation and assess potential supply measures.
