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Relevance: GS-II (IR) | GS-III (Energy Security) | Source: Geopolitics & Global Economy

The News: The US frequently uses severe economic sanctions to control where other nations buy their oil. While historical data shows India previously stopped buying from Iran and Venezuela due to American pressure, New Delhi is now fiercely defending its “strategic autonomy” to protect its economy and keep fuel prices low.

1. How US Sanctions Control the Oil Flow

Official data proves that American foreign policy has repeatedly forced India to change its oil suppliers overnight.

  • The Iran Shutdown: Iran used to supply 10% of India’s oil. When the US imposed strict sanctions in 2018, Indian imports crashed to absolutely zero for six years. They only restarted when the US slightly eased the rules in March 2026.
  • The Venezuela Squeeze: Venezuela was once a top supplier for India. US sanctions in 2019 dropped this trade to zero. Following a leadership change and relaxed sanctions in early 2026, imports quickly bounced back.
  • The Russian Rollercoaster: After the 2022 Ukraine war, India aggressively bought cheap Russian oil. But when the US imposed a massive 50% penalty tariff on India in August 2025, Russian imports plummeted by almost half.

2. The 2026 Reversal and Global Crises

Recent global emergencies forced India to ignore external pressure and drastically rethink its oil dependency.

  • The Supreme Court Shock: In February 2026, the US Supreme Court struck down the US President’s power to enforce those 50% tariffs. Free from this penalty, India immediately ramped up its Russian oil buying, with Russia’s share hitting a massive 50% by July 2026.
  • The Hormuz Crisis: Buying Russian oil became a national emergency after a US attack on Iran forced the closure of the Strait of Hormuz. This critical chokepoint blocked Middle Eastern oil supplies, making cheap Russian crude India’s only reliable lifeline.

Value Box: Key Geopolitical & Strategic Anchors
Strategic Autonomy The core philosophy of India’s foreign policy. It means New Delhi pursues independent energy deals (like buying discounted Russian crude) without being bullied by Western alliances.
Secondary Sanctions (CAATSA) Unilateral US laws designed to punish third-party countries (like India) for trading with US enemies. India’s constant struggle with these laws shows how vulnerable global supply chains are.
Strait of Hormuz A highly critical, narrow waterway between the Persian Gulf and the Gulf of Oman. Its closure severely threatens the world, as roughly 20% of all global oil passes through it.
Diversification Strategy To protect the economy from Middle Eastern wars and sudden US sanctions, India actively broadens its oil basket by importing from Africa, Latin America, and North America.

Practice MCQ

Q. Consider the following statements regarding international relations and global maritime routes:

  1. The Strait of Hormuz is a critical maritime chokepoint located between the Persian Gulf and the Gulf of Oman.
  2. “Secondary sanctions” refer to binding legal mandates issued by the United Nations Security Council to isolate hostile nations globally.

Which of the statements given above is/are correct?

(a) 1 only     (b) 2 only     (c) Both 1 and 2     (d) Neither 1 nor 2

Answer: (a) 1 only
Hint: Statement 1 is correct, as the Strait of Hormuz is a vital oil transit route. Statement 2 is incorrect because secondary sanctions are unilateral domestic policies of individual nations (like the U.S. CAATSA), not multilateral mandates issued by the United Nations.
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