PM Modi Chairs Urgent Review Meeting As West Asia Conflict Threatens Global Oil Routes

Prime Minister Narendra Modi on Sunday held a high-level review meeting as escalating conflict in West Asia sent fresh tremors through global energy markets, with Brent crude hovering around $109 per barrel after briefly surging to an intraday high of $119. The meeting underscored New Delhi's growing concern over energy security as tensions around key oil transit routes threaten to disrupt global supply chains.

Focus on petroleum, gas, power and fertiliser supply

During the meeting, Modi assessed the evolving situation in West Asia with a sharp focus on maintaining uninterrupted supply of critical commodities and ensuring that essential sectors continue to function without disruption. According to people familiar with the discussions, the review covered petroleum, crude oil, natural gas, power and fertiliser supplies, all of which remain sensitive to prolonged geopolitical instability.

The Prime Minister also examined India's logistics and distribution systems in detail, with emphasis on ensuring steady movement of fuel and related supplies across the country. The objective, officials indicated, was to prevent bottlenecks and make sure domestic demand remains fully met even if the external situation worsens further.

US LPG shipment offers limited relief amid supply concerns

The review came at a time when India received some immediate support on the supply front, as an LPG tanker from the United States docked along the country's western coast. The arrival is seen as a timely boost as authorities remain alert over the possibility of further strain on imports if tensions in the region deepen.

Even with that development, the broader picture remains uncertain. The Strait of Hormuz, one of the world's most crucial oil transit chokepoints, remains at the centre of global concern as fears of prolonged disruption continue to weigh heavily on crude markets and energy planners worldwide.

West Asia tensions intensify with threats across multiple fronts

The regional crisis showed little sign of easing on Sunday. US President Donald Trump warned that Washington could strike Iranian power infrastructure if Tehran does not remove its blockade of the Strait of Hormuz within 48 hours.

At the same time, Iran has escalated its military response and reportedly attacked a nuclear facility in central Israel after Tel Aviv targeted the Natanz nuclear facility in Iran. The conflict has also widened beyond the immediate Israel-Iran theatre, with Houthi rebels threatening to enter the war on Iran's side and target shipping routes in the Red Sea and the Suez Canal.

The growing threat across the Strait of Hormuz, the Red Sea and the Suez Canal has raised the risk of disruptions to some of the world's most critical maritime energy corridors.

Retail fuel prices steady, but industrial diesel sees sharp jump

Despite the mounting global volatility, retail petrol and diesel prices for ordinary consumers in India have largely remained unchanged since the war began. However, other fuel segments have started reflecting the pressure from rising international prices, marking the first significant revisions since March 2024.

Industrial diesel has seen one of the steepest increases, rising by around 25% as refiners and distributors adjust to the impact of elevated crude costs and uncertainty in global supply routes.

Officials said the government is maintaining close oversight of domestic energy availability and remains prepared to intervene if required. Earlier this week, Sujata Sharma, joint secretary in the petroleum ministry, signalled that India may reassess fuel exports if domestic needs come under pressure.

"Domestic consumption is priority, and the government will review (the export plan)," she added.

India, one of the world's largest refining hubs, is expected to rely on that capacity advantage while balancing export commitments and domestic demand if the West Asia conflict continues to drive volatility in global oil markets.