India Turns to Latin America and Africa for Oil as Strait of Hormuz Crisis Deepens

Indian refineries are aggressively shifting their crude oil purchases toward Latin America and Africa as Middle East supply chains buckle under the ongoing Strait of Hormuz disruption.

India’s Refineries Hunt for New Oil Sources

India’s oil refiners have been quietly but rapidly redirecting their crude purchases away from the Middle East. The reason is clear: supply disruptions linked to the deepening crisis at the Strait of Hormuz have left a gaping hole in their procurement plans. According to data from energy analytics firm Kpler, Indian refineries have been stepping up imports from Latin American and African nations to plug that gap.

“In April and May, Indian oil processors increased imports from Venezuela, Brazil, Angola, and Nigeria to make up for the shortfall,” the report states.

How the Hormuz Crisis Unfolded

The roots of this supply crunch go back to late February when the United States and Israel launched strikes on targets inside Iran on February 28. Over 3,000 people lost their lives in the attacks. On April 8, Washington and Tehran announced a ceasefire. Negotiations held later in Islamabad, however, ended without any breakthrough. No fresh fighting broke out after that but the United States went ahead and began a naval blockade of Iranian ports.

Also Read | US Military Says Ceasefire With Iran Remains Intact Even After Fresh Strikes

Shipping Grinds to a Halt Prices Climb

The escalating tensions brought shipping through the Strait of Hormuz to a near-standstill. The strait is one of the world’s most critical chokepoints it handles a massive share of global oil, refined fuel, and liquefied natural gas flows. With vessels reluctant or unable to pass through, fuel prices spiked across most of the world.

Also Read | Rubio Declares Middle East Straits Will Reopen With or Without Iran’s Cooperation

US Eyes India as a Buyer for American Crude

The situation has also caught Washington’s attention diplomatically. Just days earlier on May 21 US Secretary of State Marco Rubio stated that the United States wants India to ramp up purchases of American crude oil, signaling Washington’s intent to use the supply vacuum as a trade opportunity.

Also Read | America’s Top Diplomat Says US Is Ready To Flood India With Energy