India Seeks US-Backed Marine Cover as Gulf Crisis Clouds Oil and Gas Shipments

India is in talks with the United States to secure marine insurance cover and related protection for tankers moving crude oil and other energy cargoes from West Asia, as the Strait of Hormuz shutdown and Gulf security crisis threaten to disrupt supplies and drive-up costs.

A senior government official said New Delhi remains “comfortable for now” thanks to existing crude and LPG stocks, but is proactively engaging Washington on a US-backed mechanism that would ensure continued insurance and operational support for vessels transiting high-risk Gulf waters. The discussions build on a proposal under which the US International Development Finance Corporation could extend guarantees or war-risk cover, reassuring shipowners and insurers at a time when many commercial underwriters have sharply raised premiums or withdrawn cover for the region.

India meets roughly half of its daily gas consumption through imports and relies heavily on West Asia for crude, LNG and LPG; officials estimate around 60 MMSCMD of gas supply is currently unavailable due to Hormuz disruptions and Qatar’s force majeure on some LNG cargoes. Alongside the US talks, New Delhi is working with producers and traders to diversify energy sources—tapping the US, West Africa and others—and is ready to “reprioritise” domestic gas allocation to avoid shutdowns if the situation worsens.