As the United States-Israeli war on Iran completes two weeks, it has triggered a global energy crisis, even as Iran’s retaliation threatens to pull the rest of the Middle East into the conflict.The Strait of Hormuz, through which some 20 to 30 percent of global crude and liquefied natural gas (LNG) pass, has effectively been closed because of the conflict, sending crude prices soaring and disrupting oil and gas supplies.Recommended Stories list of 4 itemsend of listFrom Southeast Asia to Pakistan, the ripple effects of the war are being felt across Asia and beyond.But one country in particular could face a double whammy if the conflict intensifies: India, the world’s fourth-largest economy, depends on the Gulf for its energy needs and also for remittances sent by a vast workforce resident in the Middle East.We unpack how the war is bleeding India’s economy.Energy shortageMore than 80 percent of India’s gas and up to 60 percent of its oil pass through the Strait of Hormuz, which connects the Gulf to the Gulf of Oman and the Arabian Sea and is currently at the centre of retaliatory tactics Iran is deploying against the US and Israel. By threatening all shipping coming through, Iran has effectively closed the strait – leaving Gulf oil producers with no sea route by which to deliver oil and LNG.Most shipping insurers have cancelled war risk coverage for tankers in the strait. Then on Wednesday, a Thai ship heading to India was attacked, drawing critici …
