Opinion | Israel-Iran War: Rethinking India's Energy Security

Updated: Mar 21, 2026 14:41 pm IST Published On Mar 21, 2026 14:37 pm IST Last Updated On Mar 21, 2026 14:41 pm IST

Published On Mar 21, 2026 14:37 pm IST

Last Updated On Mar 21, 2026 14:41 pm IST

Energy security has always been deeply intertwined with geopolitics. The oil shocks of the 1970s reshaped the global energy system. The 1973 oil embargo, imposed by the Arab members of the Organisation of the Petroleum Exporting Countries (OPEC), triggered the 1973 Oil Crises, quadrupling energy prices and wreaking havoc in the global economy. In response, major oil consuming countries established the International Energy Agency (IEA) in 1974, encouraging the establishment of strategic petroleum reserves (SPRs) and coordinated emergency responses to manage supply disruptions.

The current United States-Israel-Iran conflict around the Strait of Hormuz represents another significant inflexion point for the global energy system. Both transportation channels and energy infrastructure are increasingly attacked and weaponised. Since mid-December 2025, Brent crude prices have surged more than 100% reaching its peak last week at USD 119 per barrel. The disruption of the strategic passage - through which roughly one-fifth of global energy supplies transit - have sent ripple effects across food prices, commodity markets and stock exchanges.

The IEA and G7 declaration to release 400 million barrels of oil has done little to stabilise markets or assuage investors. The oil prices continues to sit firmly in triple digits. The ongoing crisis underscores a crucial reality - that energy security cannot be viewed with the myopic lens of supply availability and price stability alone. It is shaped by not only demand supply dynamics but also geopolitical signals, logistical chokepoints, financial exposure and technological vulnerabilities.

Much like the recalibration that followed the oil shocks of the 1970s, this conflict is likely to compel governments and institutions alike to rethink how energy security is defined and managed in the twenty first century. Future strategies will need to increasingly adopt a broader risk-management paradigm spanning across financial systems, supply chains, infrastructure protection, and geopolitical uncertainty.

India: A Case in Point

These dynamics are particularly relevant in the case of........

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