Hormuz Bottleneck 2026: How Stranded India-Flagged Ships Threaten LPG Supply and Refinery Feedstocks

Energy Crisis in India at Strait of Hormuz

An Online Crossroads Changing the World. The Gulf conflict, which caught fire at the beginning of 2026, has turned a thin strip of water into a choke point, putting nearly all of India’s energy supply at a standstill. India depends almost 50 percent of its crude oil and 90 percent of its cooking gas through the Strait of Hormuz which is only 34 kilometres wide. Indian ships by dozens are now stranded on the wrong side of it.

What Is Actually Stuck

Approximately 22 Indian ships are waiting at the Strait, loaded with crude oil, LPG, and LNG. That cooking gas crisis strikes the most. India does not have a strategic reserve of LPG as it has of that of the crude oil and 330 million households rely on it in a day. The government has already invoked Essential Commodities Act to defend supplies at home by cutting the hotels and factories first.

How India Is Responding

India does not have any military coalition. Rather, diplomats are brokering ship to ship deals with Tehran. Two LPG tankers sneaked in lately, with the direct government intervention, which relieved the Gujarat ports to some degree. The Navy is protecting the escort of Indian vessels as much as possible.

The Bigger Picture

Prices above 100 a barrel of oil stifles Indian development and raises the prices everywhere. The shipments of fertilisers are also in the traffic jam, and this poses a risk to food expenses in the late season. This crisis is driving India to even accelerate investment in renewables, domestic gas networks and emergency LPG storage, which was to happen anyway, but is now urgent.