In recent weeks, the geopolitical landscape of the Middle East has shifted dramatically, casting a shadow over the global energy market. Just before the key developments unfolded, India was enjoying a relatively stable supply of liquefied natural gas (LNG) from Qatar, which accounted for approximately 40% of its total LNG imports. However, the tranquility was shattered when a series of attacks by Iran targeted Qatar’s Ras Laffan LNG hub, leading to catastrophic damage that would sideline 17% of Qatar’s LNG capacity for an estimated 3 to 5 years.

On the morning of the attacks, reports began to surface about the escalating tensions in the region. By midday, the news broke that the Strait of Hormuz, a vital artery for global oil and gas transportation, had become nearly impassable due to Iranian military actions. This strait is crucial not only for Qatar’s LNG exports but also for India’s crude oil imports, with 40% to 50% of its crude transiting through these waters. The implications were immediate and severe, as Brent crude prices surged more than 10%, briefly exceeding $119 per barrel.

As the dust settled on the initial chaos, QatarEnergy’s CEO, Saad al-Kaabi, expressed disbelief at the extent of the damage, stating, “never in my wildest dreams” did he expect such an assault on critical energy infrastructure. The urgency of the situation prompted Indian officials to scramble for alternative energy sources. With 90% of India’s LPG imports also reliant on transit through the Strait of Hormuz, the stakes were high. Indian officials, including Randhir Jaiswal, called for the protection of civilian energy infrastructure amidst the ongoing conflict.

In the days following the attacks, European gas prices skyrocketed by 35%, reflecting the immediate market reaction to the supply disruption. As the situation unfolded, India found itself in a precarious position, heavily reliant on imports for 85% to 90% of its oil needs. The top five sources of crude petroleum for India—Russia, Iraq, Saudi Arabia, UAE, and the USA—account for around 83% of its imports in fiscal 2025. This dependency underscores India’s vulnerability to disruptions in the Middle East.

To mitigate the impending crisis, Indian energy officials, including Sujata Sharma, announced efforts to secure LNG and LPG from alternative sources. “We are trying to pick up the cargoes from other sources,” she stated, highlighting the urgency of the situation. However, experts like Sumit Ritolia warned that if disruptions through the Strait of Hormuz persist, Indian buyers may be forced to procure higher-priced spot cargoes or even reduce consumption, further straining the economy.

As the weeks progress, the damage to Ras Laffan has created a multi-year supply loss in the LNG market, raising concerns about energy security not just for India, but for countries across Europe and Asia that depend on Qatari LNG. India’s domestic LPG production from refineries has seen a significant increase of about 36% as the nation attempts to bolster its energy independence in the face of these challenges.

Currently, the situation remains fluid, with ongoing military tensions in the region complicating efforts to restore normalcy. The international community watches closely as the ramifications of these attacks ripple through global energy markets, affecting prices and supply chains. Details remain unconfirmed regarding the full extent of the damage and the timeline for repairs, but the urgency for India to diversify its energy sources has never been clearer.

This sequence of events matters profoundly for India, which is navigating a precarious path in securing its energy future. The reliance on a single source for such a significant portion of its LNG needs has exposed vulnerabilities that could have lasting impacts on its economy and energy policy. As the world grapples with the fallout from these attacks, the need for strategic planning and diversification in energy sourcing becomes paramount for India and its allies.

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The ongoing crisis in the Middle East has raised critical questions about the stability of gas prices in India. As of March 11, 2026, the price of a 14.2 kg non-subsidised LPG cylinder in Delhi stands at ₹913.00, following a ₹60 increase on March 7. This rise is attributed to significant disruptions in supply routes, particularly affecting liquefied petroleum gas (LPG) and liquefied natural gas (LNG).

India imports around 60 percent of its total LPG demand, primarily from the Middle East. The current geopolitical tensions have led to a shortage of LPG, which is crucial for domestic cooking. As a result, domestic cooking gas prices have surged, with commercial LPG prices also rising by ₹114.5.

Gas-related stocks have reacted sharply to these developments. Adani Total Gas shares jumped by 13.08 percent, reflecting investor confidence amid the price hikes for industrial clients. The rise in share prices is closely linked to the ongoing supply issues stemming from the Middle East conflict.

Additionally, the Strait of Hormuz, a vital global energy transit corridor, is facing severe disruptions. This has heightened security risks for tanker movements, further tightening gas supplies. The situation is compounded by Qatar halting LNG production due to the conflict in West Asia, which has led to a nearly 40 percent surge in European natural gas prices last week.

Industry experts note that disruptions in shipments through the Strait of Hormuz have tightened supplies, leading to increased gas prices in India. “India relies heavily on imports to meet its cooking gas needs, with nearly 60% of its total LPG demand sourced from overseas,” an industry analyst stated.

The implications of these rising gas prices are significant for consumers and businesses alike. As the crisis unfolds, the energy market in India is likely to face continued volatility, affecting both domestic and commercial users.

While the current situation presents immediate challenges, it also raises questions about India’s long-term energy strategy and its reliance on imports. The government may need to explore alternative sources and strategies to mitigate the impact of such geopolitical crises on energy prices.

As the situation develops, further details remain unconfirmed regarding the potential for additional price hikes or changes in supply dynamics. Stakeholders in the energy sector are closely monitoring the situation, hoping for stabilization in the coming weeks.

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“Yes, yes, definitely,” remarked Alma Newell, reflecting the growing concern over the rise in natural gas prices as geopolitical tensions escalate. The current situation has seen a significant spike in energy costs, particularly in the context of the ongoing conflicts involving the US, Israel, and Iran.

Recent data indicates that the cost of natural gas in the spot market has risen dramatically, with prices reaching $25.40 per million British thermal units (mbtu). This increase is attributed to the disruptions caused by the war, which includes the shuttering of the Strait of Hormuz, a critical node in global transit and shipping.

In January, India reported a total consumption of natural gas at 5,252 million metric standard cubic metres (MMSCM), with approximately 54% of this consumption met through liquefied natural gas (LNG) imports. The reliance on LNG is particularly pronounced as more than 50% of India’s imported LNG passes through the Strait of Hormuz, making the country vulnerable to fluctuations in global supply.

GAIL (India) Ltd has acknowledged the challenges posed by these developments, stating that it is currently assessing the situation regarding potential supply curtailments that may need to be imposed on its downstream customers. This assessment comes in light of a force majeure notice issued by its long-term supplier, Petronet LNG Limited (PLL), which further complicates the supply landscape.

As the situation evolves, Gregory Brew commented, “I think the current price increase in oil suggests the US will see $3.50 to $4 gasoline by next week, and $5 diesel this week.” This prediction underscores the interconnectedness of oil and gas prices, as fluctuations in one often lead to changes in the other.

In response to rising costs, India’s oil marketing companies have raised liquefied petroleum gas (LPG) prices by an average of Rs 60 per cylinder. This increase reflects the broader trend of rising energy prices, which are impacting consumers and businesses alike.

As the global energy market continues to react to these tensions, the focus remains on how countries will navigate the challenges posed by supply disruptions and price volatility. All oil refining companies operating in India have been directed to maximize the utilization of propane and butane streams for LPG production, indicating a strategic shift in response to the current crisis.

Details remain unconfirmed regarding the long-term implications of these price increases, but the immediate effects are being felt across various sectors, highlighting the critical nature of stable energy supplies in today’s interconnected world.

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