India has initiated discussions with the US to clarify a proposed insurance mechanism for vessels transiting the Strait of Hormuz, following President Trump's announcement that the US International Development Finance Corporation would provide coverage to maintain energy flows. The move comes as oil prices surge due to attacks on Iran by US and Israeli forces, disrupting the critical chokepoint through which a fifth of global energy trade passes.

India faces particular vulnerability as approximately 40% of its crude imports traverse this narrow Persian Gulf route. Mangalore Refinery and Petrochemicals Ltd., a unit of state-run Oil and Natural Gas Corp., has already shut down a crude distillation unit due to supply shortages. To mitigate risks, India is negotiating with global state-owned oil companies and traders to secure crude and liquefied petroleum gas from stockpiles that bypass the Strait of Hormuz.

Despite supply disruptions, government officials report that crude and refined product inventories remain sufficient, with no immediate need to halt fuel exports. The crisis extends beyond oil, as liquefied natural gas supplies have been disrupted following QatarEnergy's shutdown of its Ras Laffan facility after Iranian drone strikes. India, the world's fourth-largest LNG importer, is seeking alternative sources and will reprioritize local gas allocations to industrial consumers while maintaining priority for households, automobiles, and the fertilizer industry.