Israel-Iran Conflict: India Holds Sufficient Oil Reserves For Three Months, Say Sources

India holds enough crude oil reserves to meet domestic demand for up to three months, government sources told NDTV Profit on Monday, amid growing concerns over the ongoing conflict between Iran and Israel.

With fears of a broader escalation in the Middle East — a key supplier of global crude — government officials said the country is well-prepared to deal with short-term supply disruptions.

"We currently have 50% reserves, which are sufficient to manage demand for the next three months," a senior official familiar with the matter said on the condition of anonymity, adding that these reserves were built up earlier when prices were relatively lower.

The conflict, which has seen rising tensions between Iran and Israel over the past few weeks, has raised fears of disruption in oil shipments through the Strait of Hormuz — a vital maritime route through which nearly a third of global offshore oil passes.

Any disruption in this route can send crude prices surging and sharply increase insurance and freight costs for oil-importing nations like India and other countries globally.

Government sources underlined that closing the Strait of Hormuz is not in the interest of any stakeholder in the region, as it would have severe economic consequences not just for exporters like Iran but also for the global energy market.

"We must not underestimate Iran's defence capabilities, but any move to close the Strait will lead to higher freight and insurance rates and have a ripple effect on the global economy," a source said.

Despite the volatility, government sources expect global crude prices to stabilise in the $65–75 per barrel range, assuming the conflict does not escalate further.

The Ministry of Petroleum has been monitoring the global situation closely and holding active discussions with public sector oil marketing companies to ensure uninterrupted supply across the country.

Petroleum Minister Hardeep Singh Puri reiterated the government’s readiness in a post on X: "As oil is on the boil, all eyes are on the ball… In the increasingly volatile geopolitical situation, reviewed the petroleum products supply situation with @PetroleumMin officials and our PSU OMCs."

"Under the visionary leadership of PM @narendramodi Ji, we have diversified our import basket substantially and are comfortably placed to meet our fuel supply needs," Puri added.

Earlier, on June 13, Puri had also assured that the Ministry was prepared to handle any fallout from the crisis, stating that officials were continuously assessing global developments and their potential impact on India’s energy markets.