The ongoing conflict between Israel and Iran is not just escalating tensions in the Middle East but is also triggering a global shift in energy trade dynamics. With the United States directly targeting Iranian nuclear sites and issuing open threats against Tehran, the Strait of Hormuz — a critical chokepoint for global oil transportation — has become increasingly volatile. Iran, in response, has repeatedly threatened to shut down the Strait, raising concerns across global markets.
Amid these growing tensions, India has taken significant steps to secure its energy needs and diversify its crude oil supply sources. In a notable shift, India has drastically reduced its oil imports from Iran and is increasingly turning to other global suppliers, particularly Russia and the United States.
According to data from global trade analytics firm Kpler, as reported by PTI, India’s crude oil imports from Russia surged to a two-year high in June 2025. Indian refineries have imported an estimated 2 to 2.2 million barrels of Russian crude oil per day — levels not seen in the past two years. This shift has propelled Russia to the top of India’s oil supplier list, surpassing traditional Middle Eastern suppliers like Iraq, Saudi Arabia, UAE, and Kuwait, who once dominated India’s oil imports.
For comparison, in May 2025, India imported approximately 1.96 million barrels per day (BPD) of Russian crude. The continuous rise in June marks a significant increase as the Israel-Iran conflict intensifies.
Simultaneously, India’s oil imports from the United States have also seen a sharp uptick. In June 2025, U.S. crude exports to India rose to 439,000 barrels per day, a substantial jump from 20,000 barrels per day in the previous month. This sharp increase underlines India’s strategic pivot in its sourcing decisions as the geopolitical crisis in the Middle East deepens.
According to Kpler’s Chief Research Analyst, India’s shift in oil import strategy directly correlates with the escalating conflict between Israel and Iran. Ship movement patterns further suggest that shipments from the Middle East are likely to decline even more in the coming months, a trend that will likely be reflected in future trade data.
The United States’ increasing pressure on Iran and the broader instability in the region have led not only India but also several other nations to reconsider their dependence on Middle Eastern oil. The looming threat of disruptions in the Strait of Hormuz — a crucial artery through which a significant portion of the world’s oil flows — has made diversification a pressing necessity.
India’s proactive approach serves as a precautionary buffer against any potential supply shocks that might arise if the Strait is blocked or if the conflict spirals further out of control. By expanding its energy portfolio to include more Russian and American crude, India aims to safeguard its economic interests and ensure uninterrupted fuel supplies for its growing economy.
As the Israel-Iran conflict continues to evolve, and with the United States firmly positioned against Tehran, global energy markets remain on edge. India’s calculated move to diversify its oil imports highlights the intricate connection between geopolitics and global trade, underscoring how regional conflicts can trigger far-reaching consequences in international commerce.
Disclaimer:
The information provided in this article is based on publicly available reports, trade data, and expert analysis as of June 2025. The geopolitical situation, particularly in the Middle East, is highly dynamic and may change rapidly. Readers are advised to stay updated with official sources for the latest developments. This article is for informational purposes only and does not constitute financial, investment, or political advice.
