Hormuz Disruption Forces India to Diversify Energy Sources: S&P Global

• Strait of Hormuz disruption exposes India's deep energy dependence on West Asia, forcing refiners and gas buyers to seek alternatives.
• Crisis triggers broad supply-side shock across oil, gas, shipping, and chemicals markets, impacting India's energy security.
• India's crude imports, 50-55% through Hormuz, face price shocks and logistical issues; refiners diversify to Atlantic Basin and Russia, incurring higher costs.
• LPG and LNG markets also under stress; India heavily relies on Middle Eastern LPG and 60% of LNG imports pass through Hormuz.
• Petrochemical prices surge 31-67%, facing a 'triple whammy' of halted imports, reduced Far East supplies, and lower domestic output.