Business & Economics
Hormuz Blockade Spurs Record Asian Rush for Russian Energy
After U.S.–Israeli strikes on Iran choked the Strait of Hormuz, India secured about 60 million barrels of Russian crude for April while six other Asian nations queued up under a new 30-day U.S. sanctions waiver, reversing months of declining Russian imports.
Focusing Facts
- Kpler tracking shows India’s Russian crude intake jumping from roughly 1.0 mbd in February to an expected 1.9-2.0 mbd in March–April 2026—nearly its May 2023 peak of 2.1 mbd.
- On 5 March 2026 Washington issued, and later broadened, a 30-day waiver permitting purchases of Russian oil already afloat before 12 March.
- The Philippines bought two ESPO Blend cargoes totalling 1.5 million barrels in late March—its first Russian crude purchase since 2021.
Context
Oil has been rerouted before—Britain turned to Venezuelan crude during the 1956 Suez Crisis and the U.S. drew on the SPR in 1990 when Iraq closed the Gulf—but this is the first time Washington has simultaneously sanctioned and temporarily licensed the same barrels. Structurally, the episode accelerates two long-running trends: (1) the fracturing of the post-1974 petrodollar order as trade shifts to rupees, roubles and yuan; and (2) Asia’s growing leverage in spot markets as its refiners prove able to swap suppliers within weeks. Yet the boom has limits: Ukrainian drone strikes have knocked out roughly 40 % of Russia’s export capacity, and Hormuz normally carries a fifth of global supply. If both bottlenecks persist, today’s scramble could echo the 1979 second oil shock—short-lived price spikes followed by demand destruction and a push for diversification. In a century-scale view, the incident underscores how naval chokepoints and sanctions remain decisive in energy geopolitics, but also how rapidly the center of gravity has migrated from Atlantic consumers to Indo-Pacific buyers who can play rival powers against each other to secure barrels.
Perspectives
Indian business and national media
e.g., The Times of India, Hindustan Times, CNBC TV18 — Portrays India’s surge in Russian crude and prospective LNG purchases as a hard-nosed, flexible strategy that protects energy security and keeps refineries humming despite the Strait of Hormuz crisis. Tends to echo New Delhi’s line, downplaying sanction risks and presenting the imports as a success story of diversification and resilience.
US and other Western outlets running the Reuters wire
e.g., The Jerusalem Post, U.S. News & World Report, Yahoo! Finance — Emphasises that India’s rekindled energy ties with Moscow stem from Trump’s Iran war and could violate Western sanctions while propping up the Kremlin’s wartime revenues. Uses a Washington-centric frame that spotlights sanction compliance and Trump’s policies, potentially overstating the geopolitical backlash compared with India’s domestic calculus.
Southeast Asian regional outlets
e.g., GMA Network-Philippines, The Jakarta Post-Indonesia — Reports that multiple Asian buyers, including the Philippines and Thailand, are lining up for discounted Russian oil to offset Gulf shortages, with demand now threatening to outstrip supply. Focuses on regional access to cheaper barrels and economic upside, sidestepping the ethical or sanction-related dimensions and relying heavily on Russian and market sources.
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