India seeks US clarity on insurance cover for ships passing through Strait of Hormuz: Report

India has held discussions with the United States to seek clarity on a proposed mechanism to provide insurance cover for oil tankers and other vessels transiting the strategically vital Strait of Hormuz, according to a Bloomberg report, as tensions in the region threaten global energy flows. 

The move comes after US President Donald Trump said this week that the U.S. International Development Finance Corporation could provide insurance support to ensure the continued movement of energy supplies and other trade through the Gulf. 

To mitigate potential supply disruptions, India is also engaging with global state-owned oil companies and commodity traders to procure crude oil and liquefied petroleum gas (LPG) from international stockpiles that do not pass through the Strait of Hormuz, the Bloomberg report said, citing an official familiar with the discussions. 

Business Today was unable to verify the development independently.

Oil markets have turned volatile after the United States and Israel launched coordinated strikes on Iran, escalating tensions across West Asia and disrupting maritime movement in the region. The narrow waterway — linking the Persian Gulf with global shipping lanes — handles roughly a fifth of the world’s energy trade. 

India faces significant exposure to the route, with about 40% of its crude oil imports passing through the Strait of Hormuz. Supply constraints are already beginning to affect domestic refiners. Mangalore Refinery and Petrochemicals Ltd., a unit of Oil and Natural Gas Corporation, has shut a crude distillation unit due to feedstock shortages. 

Liquefied natural gas supplies have also been disrupted after QatarEnergy halted operations at its Ras Laffan Industrial City facility — the world’s largest LNG export complex — following Iranian drone strikes. India meets around half of its natural gas demand through imports, with Qatar accounting for roughly half of those shipments. 

The developments underscore India’s growing energy security concerns as the conflict widens and key shipping routes in the Gulf face mounting risks.