The Iranian parliament has approved the closing of a key oil shipping route in retaliation to the US bombing of three of its nuclear facilities, Iranian media reported today. The Strait of Hormuz is one of the world's most critical chokepoints, through which a fifth of global oil and gas supply flows. The development will affect about 2 million barrels per day (bpd) of crude oil out of India's total import of 5.5 million bpd. The closing of the narrow waterway, however, is not being viewed with grave concern in New Delhi, at least for now. Having diversified its sources of imports, India can explore alternative sources - from Russia to the US and Brazil - to fill any void, industry officials and analysts said. "We have been closely monitoring the evolving geopolitical situation in the Middle East since the past two weeks. Under the leadership of PM Modi, we have diversified our supplies in the past few years and a large volume of our supplies do not come through the Strait of Hormuz now," Hardeep Singh Puri, Union Minister for Petroleum and Natural Gas, said on X. Russian exports oil via the Suez Canal, Cape of Good Hope, or the Pacific Ocean. Even US, West African, and Latin American flows - though costlier - are increasingly viable backup options. Also, India's key supplier for liquefied natural gas, Qatar, does not use the Strait of Hormuz for supplies to the country. India also has the option to import LNG from Australia, Russia and the US. India Imports 90 per cent Crude Oil The regional tension in West Asia would however have a near-term impact on prices, with oil prices likely to jump to USD 80 per barrel, news agency PTI reported quoting analysts. India is 90 per cent dependent on imports to meet its crude oil needs and buys roughly half of its natural gas from overseas. While crude oil is turned into fuels like petrol and diesel in refineries, natural gas is used for generating electricity, making fertilisers, and turned into CNG for running automobiles or supplied to household kitchens for cooking. Strait of Hormuz - A Narrow Channel That Holds Great Strategic and Economic Importance The Strait of Hormuz, which connects the Persian Gulf to the Arabian Sea and the Indian Ocean, is approximately 21 miles (33 kilometres) wide at the narrowest point. Shipping lanes in the waterway are even narrower - two miles wide in each direction, making them vulnerable to attacks and threats of being shut down. Iran Israel War Live Updates: Over 1,400 Indian nationals Evacuated So Far from Iran Under 'Operation Sindhu' The Strait of Hormuz is of great strategic and economic importance, especially as oil tankers from various ports on the Persian Gulf must pass through the strait. It serves as the maritime artery through which a fifth of the world's oil and gas flows. In 2024, daily shipments averaged 20.3 million barrels of oil and 290 million cubic meters of LNG, according to data from the US Energy Information Administration (EIA).The bulk of oil exports from regional powerhouses - Saudi Arabia, Iraq, UAE, Qatar, Iran, and Kuwait - must transit this narrow waterway. In the past, it was the West - predominantely the US and Europe - that stood most exposed to disruption in Persian Gulf energy flows but today it is China and Asia that would bear the brunt of any closure. According to the EIA, 82 per cent of the crude oil and condensate exports passing through the Strait of Hormuz in 2022 were destined for Asia, with India, China, Japan, and South Korea accounting for 67 per cent of total flows in 2022 and the first half of 2023.