Iran Conflict Sparks Severe Energy Crisis for India's Growing Economy
New Delhi, Thursday, 9 April 2026.
As of April 2026, the Iran conflict’s energy shock is battering India’s economy. Unprecedented cooking gas shortages are forcing restaurant closures and threatening to slash national GDP growth.
The Anatomy of a Supply Squeeze
The physical supply chain disruption is severe. The war, which entered its sixth week in early April 2026, has effectively closed the Strait of Hormuz, impacting approximately 20% of global oil supplies [2][4]. India relies heavily on the Middle East, importing 60% of its natural gas and over 90% of its liquefied petroleum gas (LPG) from the region [1]. Consequently, the Indian crude basket experienced a sharp increase, surging from around $60 per barrel at the beginning of 2026 to over $140 by mid-March, representing a jump of 133.333 percent [3]. Similarly, the global benchmark Brent crude spiked from roughly $70 per barrel before the conflict began on February 28, 2026, to approximately $109 by April 2, 2026, an increase of 55.714 percent [2].