The West Asia Briefing

Stepwell Centre for Asian Futures · Ahmedabad University · Data current as of 24 March 2026 (Day 25)
⚡ Mar 23, 2026 — Day 24 · Major development: Trump announces 5-day postponement of US strikes on Iranian power plants after "very good and productive" talks. Iran denies talks are taking place. Brent crude swings from $114 to $101 in single session — largest intraday reversal in years. West Texas Intermediate (WTI) falls 9.5% to $88.95. Iran threatens to strike desalination plants and electricity infrastructure across the region if its own grid is hit. International Energy Agency (International Energy Agency (IEA)) confirms 40+ energy assets across 9 countries severely or very severely damaged — largest supply disruption in oil market history. Sources: CNBC · CNN · Reuters · Euronews

The West Asia Briefing — US–Israel war with Iran: implications for India and the Indian Ocean Region

Stepwell Centre for Asian Futures · The Learning Community · Ahmedabad University · Data current as of 24 March 2026 (Day 25 of conflict) · Brent $103.67 · WTI $91.38

Brent crude
$112.87
▲ +59% since Feb 27
Oman crude (all-time high)
$166.96
▲ +$97 · China panic bid
Hormuz daily transits
~2 /day
▼ 97% vs 100+ pre-war
Tankers stranded (Gulf)
~400
60 VLCCs · 40,000 seafarers
India crude basket
$113.57
vs $75 FY 25/26 budget (April 2025 – March 2026) (+63%)
USD / INR
93.33
All-time high · +8% YTD
Total killed (all sides)
2,000+
Iran 1,300+ · US 13 · Israel 17
QatarEnergy LNG
Offline
20% of global LNG · fires at Ras Laffan
Conflict escalation — key events timeline
Feb 28
US–Israel launch joint strikes on Iran. Khamenei killed. Hormuz effectively closed. Commercial shipping halts.
Mar 1–2
Dubai, Abu Dhabi airports closed. Jebel Ali port struck. US embassy Kuwait struck. Qatar closes airspace. QatarEnergy force majeure — Ras Laffan first struck.
Mar 4
Bahrain Bapco refinery struck & force majeure. Kuwait KPC cuts production. Islamic Revolutionary Guard Corps (IRGC) deliberately sinks 10 commercial vessels.
Mar 5–9
Partial Hormuz passage (non-US/Israel only). International Energy Agency (IEA)/G7 release 400M bbl Strategic Petroleum Reserve (SPR). Brent hits $94. Oman surges to record highs.
Mar 13
Indian LPG carriers permitted through Hormuz. Drone kills 2 Indians in Sohar, Oman. UAE has intercepted 300+ missiles to date.
Mar 17–18
Drone strikes Dubai fuel depot. Ruwais refinery hit. Israel strikes South Pars / Asaluyeh — world's largest gas field. Coordinated with US. Brent crosses $115 intraday.
Mar 23
Trump announces 5-day pause on strikes on Iranian power plants, claims "very good" talks with Tehran. Iran denies any negotiations. Brent falls 13% from $114 to $99 — largest intraday swing since 2022. West Texas Intermediate (WTI) falls 9.5% to $88.95. Iran threatens to completely close the Strait of Hormuz and strike desalination plants if its power grid is hit. 22 nations sign statement on Hormuz safe navigation. USS Gerald R. Ford carrier docks in Crete for repairs after on-board fire. Bloomberg · PBS NewsHour · Al Jazeera
Mar 24 (today)
Iran strikes Ras Laffan (fires burning), two Riyadh refineries, Yanbu port, Habshan UAE, two Kuwait gas units, Haifa Israel. Israel Defense Forces (IDF) begins strikes on Tehran. Pentagon requests $200B additional funding. NATO refuses to help secure Hormuz.
CBS News · NPR · Al Jazeera · PBS · CNN · NBC News · Washington Times · CSIS (Mar 2026)
Force majeure declarations — Gulf energy facilities
Reuters · Bloomberg · Euronews · NBC News (Mar 2026) · Legal clause suspending contractual delivery obligations
QatarEnergy (Mar 2 + Mar 18–19)LNG halted · fires burning
Bapco Energies, Bahrain (Mar 4)380K bpd refinery struck
Kuwait KPC (Mar 4 + Mar 19)Two gas units struck
Saudi Aramco — Ras Tanura + YanbuWorld's largest terminal closed
UAE — Ruwais + Habshan + Bab900K bpd refinery hit
South Pars / Asaluyeh (Mar 18)70% of Iran domestic gas

Oil markets — The Historic Benchmark Split

Bloomberg Terminal · JPMorgan · Rystad Energy · Kpler · Jefferies · Middle East Council on Global Affairs (Mar 2026)

WTI · US landlocked
$96.84
▲ +$26 since Feb 27
No Hormuz exposure · US shale · Strategic Petroleum Reserve (SPR) suppressing
Brent · North Sea / international benchmark
$103.67
▲ +3.77% on Mar 24 · fell 14% on Mar 23 · peaked $113.71 on Mar 19 · Source: Bloomberg · IEA
Biggest intraday swing since 2022 · Goldman Sachs forecasts average $110 in March–April
Dubai DBL · Asian sour
~$120–135
▲ +$50–65 since Feb 27 · Asian refiners paying record premiums for non-Middle East crude
Asia delivery · India basket proxy · GCC sour crude
Oman OQA · Recent all-time high
~$115–130
Still $25–40 above WTI · unprecedented spread · Oman–Dubai spread remains 60–80× historical norm
China panic bid · Oman–Dubai spread remains 60–80× historical norm
Four Benchmarks — One Crisis
Pre-conflict (Feb 27) vs current (Mar 24) · $/bbl · Sources: Bloomberg · CME/Investing.com · Oilprice.com
Previous record spread (2011): $25 — Brent over WTI, during Iran Hormuz threat. Current WTI–Oman spread: $70.12 — nearly 3× the all-time record. The Oman–Dubai spread (two Gulf benchmarks, same quality) peaked at $60+ (80× its historical norm). By Mar 24 both have pulled back as Trump announced a 5-day pause on power plant strikes — but the spread remains structurally elevated at 30–40× historical norm. Source: CNBC (Mar 19) · Bloomberg (Mar 23)
Why arbitrage cannot close the spread: A $5M war-risk insurance premium per Very Large Crude Carrier (VLCC) voyage blocks the physical trade. Solvency II requires 30–60 consecutive incident-free days before premiums normalise. The spread persists until the insurance wall falls — not when peace is declared.
Bloomberg Terminal · JPMorgan (Natasha Kaneva) · Rystad Energy (Susan Bell) · Kpler · Jefferies (Mohit Kumar)
Brent Crude Price — Last 30 Days (Feb 22 – Mar 24, 2026) · Key War Events Annotated
EIA STEO Mar 2026 · CNBC · Trading Economics · Citi Research
Brent–Dubai Exchange of Futures for Swaps (EFS) spread & Oman–Dubai prompt spread
OilPrice.com · Kpler · Bloomberg · Discovery Alert (Mar 2026)
Brent–Dubai Exchange of Futures for Swaps (EFS) spread
Pre-conflict (Feb 27)
~$1.80 / bbl
Early conflict (Mar 3–5)
$4.20 / bbl
Post–South Pars strike (Mar 19 est.)
$8.50+ / bbl — estimated new record
Oman–Dubai prompt spread
Historical norm
$0.75 / bbl
Peak blockade (Mar 9)
$55.74 / bbl (previous record: $6.22)
Post–South Pars (Mar 19)
$60+ / bbl — 80× historical norm
Widest Brent–Dubai Exchange of Futures for Swaps (EFS) gap in history per Bloomberg · Physical vs paper gap in Asia: ~$40 · Asian physical crude already above 2008 Brent record ($147.50)

India Energy Status — Import Flows: Source, Route and Commodity

Kpler · EIA · Morgan Stanley · Ministry of Petroleum & Natural Gas · PPAC (Mar 2026)

India Crude Imports — Source, Route and Commodity Type
Approximately 4.8–5.0 mb/d total net imports · ~56% of crude + ~80% of LPG transits Hormuz
Iraq (23%) Russia (21%) Saudi Arabia (14%) UAE / Kuwait (9%) Qatar (4%) Other (29%) Hormuz-routed
Kpler · The Print · The Diplomat · Morgan Stanley India (Mar 2026) · Russia share fell from ~1.7 mb/d (2025) to ~1.0 mb/d amid US tariff deal pressure
India Crude Import Basket by Source Country
Share of total crude imports by supplier country · early 2026
Iraq 23% Russia 21% Saudi Arabia 14% UAE 9% Other Gulf 10% Rest of world 23%
Strait of Hormuz dependence
% of crude imports routed via Hormuz · Kpler · Morgan Stanley · EIA
Kpler · The Print · Morgan Stanley (Mar 2026)
India LNG sources & Hormuz LPG exposure
EIA Country Analysis Feb 2025 · Petroleum Planning and Analysis Cell (PPAC) · ~90% of India's LPG imports travel through Hormuz
Qatar 52% Other ME 14% Australia 15% US 10% Others 9%
India LPG imports from Gulf states~82%
India LPG via Hormuz~90%
Normal ships per day (LPG)25+ · now 3–4
Black market cylinder price₹4,500 vs subsidised
Morbi ceramic units closed430 units · 3+ weeks
Domestic LPG production▲ +25% (Finance Ministry)
India Strategic Petroleum Reserve (SPR) cover~9 days (International Energy Agency (IEA): 90 days)

India Macro — Crude, Rupee, Reserves & Current Account

Reserve Bank of India (RBI) · Goldman Sachs · Morgan Stanley · Mitsubishi UFJ Financial Group (MUFG) · 5paisa · FXStreet · Trading Economics · Reuters

USD/INR (overseas)
93.33
All-time high · +8% YTD
FX reserves — down $11.7B in past month
$716.8B
▼ $11.7B in one week
Reserve Bank of India (RBI) dollar sales — single week (Mar 7–14)
$18–20B
Largest single-week defence
Goldman Gross Domestic Product (GDP) revision
6.5%
▼ from 7.0% · FY 25/26
Crude Price vs USD/INR — Correlation Since Conflict Onset
Reserve Bank of India (RBI) · Trading Economics · Reuters · 5paisa · FXStreet (Mar 2026) · Correlation coefficient ~0.94 since Feb 28
$10/bbl oil rise →
₹0.40–0.60 INR depreciation (Mitsubishi UFJ Financial Group (MUFG) historical elasticity)
Since Feb 27:
Brent +59% · INR −4% (Reserve Bank of India (RBI) intervention dampening the move)
Without Reserve Bank of India (RBI) defence:
Models suggest USD/INR 96–98 (Mitsubishi UFJ Financial Group (MUFG)) vs current 93.33
Foreign Exchange (FX) Reserves Trajectory & Adequacy Thresholds
Reserve Bank of India (RBI) Weekly Statistical Supplement · Reuters · Goldman Sachs (Mar 2026)
Reserve adequacy thresholds
3-month import cover (IMF/Reserve Bank of India (RBI) minimum)~$175B
$500B market confidence floorForeign Portfolio Investment (FPI) outflow accelerator
$600B estimated Reserve Bank of India (RBI) comfort zoneInternal target minimum
Current level$716.8B — above all lines
The burn rate
Reserve Bank of India (RBI) sold $18–20B in a single week to defend orderly conditions. Net forward dollar sales approaching $100B across onshore and offshore markets. At $11.7B/week average drawdown, reserves would cover approximately 61 weeks at current pace.
Reserve Bank of India (RBI) Weekly Statistical Supplement · Reuters · Goldman Sachs India · Mitsubishi UFJ Financial Group (MUFG) FX Note Mar 12
Current Account Deficit (CAD) Sensitivity to Oil Price
Morgan Stanley · Goldman Sachs · Mitsubishi UFJ Financial Group (MUFG) · Ministry of Finance (Mar 2026) · Every $10/bbl sustained rise widens Current Account Deficit (CAD) by ~50 bps
FY 25/26 budget (April 2025 – March 2026) assumption ($75/bbl):
Current Account Deficit (CAD) −0.4% of Gross Domestic Product (GDP)
Goldman Sachs revised (Mar 19):
Current Account Deficit (CAD) −1.2% of GDP (+0.8 ppt widening)
Mitsubishi UFJ Financial Group (MUFG) stress ($120 oil):
Current Account Deficit (CAD) −2.8% of Gross Domestic Product (GDP) with remittance decline
Morgan Stanley India Oil Sensitivity Model · Goldman Sachs India Current Account Deficit (CAD) revision Mar 19 · Mitsubishi UFJ Financial Group (MUFG) FX Research (Mar 12)
Gross Domestic Product (GDP) growth forecasts under oil shock scenarios
Goldman Sachs · Morgan Stanley · Mitsubishi UFJ Financial Group (MUFG) · Reserve Bank of India (RBI) Monetary Policy Committee (MPC) · IMF (Mar 2026)
ScenarioBrent levelUSD/INR yr-endCurrent Account Deficit (CAD) % Gross Domestic Product (GDP)Consumer Price Index (CPI) addFY 26/27 Gross Domestic Product (GDP)
S1 — Quick resolution 30%$80–8591–92−0.6%+20 bps7.0–7.2%
S2 — Partial blockade 45%$95–11093.50–95−1.2%+50 bps6.5%
S3 — Blockade extends Q3 18%$120+95.50–97.50−1.9%+80 bps6.0%
S4/S5 — Infra strikes 7%$140+97–100+−2.8%+120 bps5.0–5.5%
Goldman Sachs India (revised FY 25/26 to 6.5% from 7.0% on Mar 19) · Morgan Stanley India (Mar 11) · Mitsubishi UFJ Financial Group (MUFG) FX Research (Mar 12) · Reserve Bank of India (RBI) Monetary Policy Committee (MPC) Feb 2026
The Compound Squeeze — Oil Price × Rupee Depreciation on India's Import Bill
Budget baseline ($75/bbl · ₹83.50/$) vs current ($113/bbl · ₹93.33/$)
Budget: $75 × ₹83.50 = ₹6,262/bbl
Current: $113 × ₹93.33 = ₹10,543/bbl
Combined overshoot in ₹ terms: +68.3%
At 5 mb/d: +₹11,800 cr/day extra vs budget
Higher oil → more dollars needed → INR falls → same oil costs more in rupees → Current Account Deficit (CAD) widens → govt subsidises LPG/kerosene → fiscal deficit widens → bond yields rise → Foreign Portfolio Investment (FPI) outflows → INR falls more. Each step feeds the next.
Goldman Sachs India · Mitsubishi UFJ Financial Group (MUFG) FX Research · Reserve Bank of India (RBI) intervention data Reuters Mar 2026

Hormuz Maritime Crisis — Shipping & Cargo Flows

Vortexa · Kpler · Lloyd's List Intelligence · S&P Global · Windward Maritime AI · DG Shipping India (Mar 2026)

Ships stranded (Gulf of Oman)
~400
60 VLCCs · 8% of global fleet idle
Crude at risk
~120mb
60 VLCCs × ~2mb each
War-risk premium (Very Large Crude Carrier (VLCC))
+$5M/voyage
0.55% of hull · +1,400% vs baseline
Commercial ships sunk
10
Islamic Revolutionary Guard Corps (IRGC) deliberately · declared policy
Global Cargo Flows — What Passes Through Hormuz and Where It Goes
Pre-conflict volumes · Kpler · EIA · S&P Global · Vortexa · IEA (2025/early 2026)
~20–25% of global crude transits Hormuz · 20% of global LNG · 8% of global LPG · Vortexa · Kpler · EIA
Hormuz daily tanker transits — conflict timeline
Vortexa · S&P Global · Windward Maritime AI · Lloyd's List (Feb 28 – Mar 17, 2026)
Mar 1–2: Zero transits · Mar 5: Islamic Revolutionary Guard Corps (IRGC) allows non-US/Israel vessels · Mar 8: 2 outbound (Iranian-flagged only) · Mar 13: Indian LPG carriers permitted · Mar 18: 3 sanctioned tankers westbound · Mar 20: 1 (sanctioned North Star, sanctions waiver) · Mar 22–23: 2 Indian-linked LPG carriers · Mar 24: Chinese-owned tanker via Iranian coastal route · Clarksons (Mar 24): average 4 transits/day in week to Mar 23 vs 125/day pre-conflict · Source: Argus Media (Mar 24) · Bloomberg (Mar 24) · UANI (Mar 19)
Stranded Vessel Breakdown by Type and Cargo Value at Risk
~400 ships in Gulf of Oman anchorage · Vortexa / Kpler (Mar 16, 2026)
Vessel type composition
Very Large Crude Carrier (VLCC) crude 15% LPG/LNG carriers 11% Product tankers 14% LNG carriers 5% Containers 10% Dry bulk/other 25% Other 8%
% of Normal Supply Reaching India
Vortexa · Kpler · Lloyd's List · S&P Global · DG Shipping India (Mar 2026)
War-Risk Insurance Premium Trajectory
Lloyd's Joint War Committee · Solvency II · P&I clubs · Mar 2026
Pre-conflict baseline (Feb 27)0.05% of vessel value
Day 3 (Mar 1)0.25% · ▲ +400%
Peak — Mar 9 (blockade)0.75% · ▲ +1,400%
Current — Mar 180.55% · +$1.2M per Very Large Crude Carrier (VLCC) voyage
Fujairah bunkering premium+$85/t vs Singapore VLSFO
Even after a ceasefire: Solvency II requires 30–60 consecutive days of zero incidents before P&I clubs begin coverage review. Based on the Red Sea precedent (26 months and still not normal), full logistics normalisation takes 6–16 months post-ceasefire — the logistics system lags the financial relief rally by the longest duration of any element of this crisis.
Lloyd's List · Solvency II Directive · Red Sea precedent (Drewry / Xeneta)

Geopolitics & Country Costs

Al Jazeera · TIME · CFR · Chatham House · RAND · Crisis Group · WEF · PBS · CSIS (Mar 2026)

India's Strategic Relationships — The Simultaneous Dependency Map
Crisis Group · Atlantic Council · Ministry of External Affairs (MEA) India · RAND · Al Jazeera (Mar 2026)
🇺🇸 USA
Quad partner · defence cooperation · pressure to "choose sides" against Iran · CAATSA tension over Russian arms · demanded India condemn strikes
🇮🇱 Israel
₹21,000 cr defence imports (2025) · drone tech · cyber cooperation · PM's state visit just before conflict began · public optics difficult post-war
🇮🇷 Iran
Chabahar port investment frozen · historical ties · Central Asia connectivity lost · India abstained on IAEA votes · 2 Indians killed in Iran-linked strike (Sohar)
🇸🇦🇦🇪🇶🇦 GCC
56% crude + 80% LPG supply · 9M diaspora · $51B remittances/yr · Iran struck all 6 GCC states despite declared neutrality · India evacuated 52,000+
🇷🇺 Russia
1.0 mb/d discounted crude · S-400 defence system · US pressure to reduce imports · non-Hormuz route via ESPO pipeline partially substituting
🌐 BRICS 2026 — India holds the chair
India officially assumed the BRICS rotating chairmanship on 1 January 2026, taking over from Brazil. India will host the 18th BRICS Summit in 2026. The theme is "Building for Resilience, Innovation, Cooperation and Sustainability." The bloc now includes Iran and UAE as full members (both joined in 2024) — both are parties to this conflict on opposite sides. The 2026 BRICS Summit in New Delhi will be the first multilateral forum where Iran, UAE, Saudi Arabia, and India sit at the same table after the war. Source: brics2026.gov.in (official) · Ministry of External Affairs
Crisis Group · Atlantic Council · RAND · Ministry of External Affairs (MEA) India · ProKerala (Mar 2026)
Country Cost Matrix — Who Pays What
Al Jazeera · TIME · CFR · Chatham House · RAND · WEF · PBS · CSIS (Mar 2026)
CountryRoleHeadline cost / impactNet position
USAInitiator$16.5B/12 days · $200B requested · gas $3.89/gal · shale windfall +$30–50BMixed
IranDefenderGross Domestic Product (GDP) −10%+ · Khamenei killed · South Pars offline · 70% domestic gas at risk · 1,300+ killedCatastrophic
IsraelCo-initiator~$6B war cost · Haifa refinery hit · nuclear facilities struck · regional legitimacy strainedTactical gain
QatarNeutral · struckRas Laffan struck twice · fires burning · 20% global LNG offline · North Field East delayedCatastrophic
Saudi ArabiaNeutral · struckRas Tanura + Yanbu closed · two Riyadh refineries hit · "trust in Iran shattered"Severe
UAENeutral · struckDXB closed 3 days · Ruwais + Habshan + Bab hit · aviation = 27% Gross Domestic Product (GDP) frozenSevere
IndiaNon-belligerent>₹4.3L cr import overshoot · Strategic Petroleum Reserve (SPR) 9 days · LPG crisis · Chabahar frozen · 9M diasporaSevere economic
PakistanBystander~20 day oil reserves · fuel up 20% · B- rated · Emerging Market Bond Index (EMBI) spread ~780bps · IMF at riskCritical
BangladeshBystander95% energy imported · universities closed · Qatar = 25% of power gasCritical
Japan / S. KoreaMajor importers90% crude from ME · helium depletion risk · LNG +60% · Strategic Petroleum Reserve (SPR) releasingHigh impact
ChinaMajor importerDrawing commercial reserves at 1 million barrels/day (mb/d) · $100B invested in Iran at risk · allowing Iranian vessels · Oman at $167 = China panic bid for physical barrelsHigh exposure
ThailandOil importerGovernment agencies ordered to work from home · diesel subsidies activated · Thailand Development Research Institute warns of panic if subsidies cut · oil reserves <30 daysHigh impact
RussiaNon-belligerentOil revenue windfall · pipeline gas to China continues · geopolitical leverage rising · arms sales opportunityNet gain
Al Jazeera · TIME · CFR · Chatham House · RAND · WEF · PBS · CSIS · NPR (Mar 2026)
Scenario Outlook — Probability Distribution
Citi Research · Morgan Stanley · S&P Global Commodity Insights · Eurasia Group (Mar 2026)
S1 — Full reopening by Apr 15 · 30%
Ceasefire + Hormuz fully reopens. Brent corrects to ~$80–85. Fastest possible resolution — requires immediate diplomatic agreement.
S6 — Negotiated ceasefire · 25%
Gradual reopening. Brent ~$90. 60% normalised supply by June. Most plausible "best case" given complexity of actors.
S2 — Partial blockade through Q2 · 45% (modal)
10–20 ships/day. Brent $95–110. Current situation. India Strategic Petroleum Reserve (SPR) under stress. EM debt spreads widening.
S3 — Blockade extends to Q3 · 18%
Brent $120+. India Strategic Petroleum Reserve (SPR) drawdown begins. Food price index exceeds 2022 Ukraine peak. Multiple countdown clocks expire.
S4/S5 — Infrastructure escalation · 7%
Infra strikes on UAE/Qatar gas. Global LNG crisis. India gas crunch. Emergency fuel rationing. Current Account Deficit (CAD) >4% of Gross Domestic Product (GDP).
Probability estimates: Citi Research · Morgan Stanley · S&P Global Commodity Insights · Eurasia Group (Mar 2026) · Current situation between S2 and S3

Emerging Market Debt — Ownership, Vulnerability & Conflict Exposure

IMF GFSR Oct 2025 · OECD Global Debt Report 2025 · World Bank IDS 2024 · JP Morgan Emerging Market Bond Index (EMBI) · Morgan Stanley · PineBridge (Mar 2026)

Total EMDE debt stock
~$29T
excl. China · 2024
Hard currency (USD) share
~38%
Major EMs shifting to local
Maturing by 2027 (high-risk)
>25%
Of USD debt stack
Non-IG Emerging Market Bond Index (EMBI) yield
>10%
Median benchmark >7%
Who Holds Emerging Market Sovereign Debt?
External public & publicly guaranteed debt · World Bank IDS 2024 · OECD Global Debt Report 2025
Private / bond markets 46% China bilateral 18% Multilateral (IMF/WB) 22% Paris Club bilateral 9% Other bilateral 5%
How Creditor Composition Has Shifted — 2000 to 2024
Private creditors now largest class · China grew from near-zero to 18% of bilateral debt in 24 years · Paris Club fell from 28% to 9% · World Bank IDS 2024
Oil-Importing Emerging Market (EM) Vulnerability Scorecard
IMF · OECD · World Bank · S&P · Moody's · Fitch (2025–26)
CountryRatingDebt/Gross Domestic Product (GDP)USD debt %FX cover (mths)Oil import % Gross Domestic Product (GDP)Conflict risk
PakistanB- (S&P)74%62%1.84.1%Critical
EgyptB (Fitch)95%55%2.43.8%Critical
BangladeshBB- (S&P)43%48%2.95.2%Severe
Sri LankaCCC+ (S&P)115%58%3.24.8%Severe
KenyaB (S&P)68%51%3.53.2%High
NigeriaB (Moody's)38%38%3.81.9%High
IndiaBBB- (S&P)83%18%10.24.2%Moderate
IndonesiaBBB (Fitch)39%40%7.12.8%Moderate
TurkeyB+ (S&P)32%42%4.23.5%High
IMF GFSR Oct 2025 · OECD Global Debt Report 2025 · World Bank · S&P · Moody's · Fitch (2025–26)
Additional Current Account Deficit (CAD) from Oil Shock · Emerging Market Bond Index (EMBI) sovereign spread widening
JP Morgan Emerging Market Bond Index (EMBI) · IMF · Morgan Stanley · Pre-conflict = Jan 2026 · Post-shock = estimated Mar 2026
Current Account Deficit (CAD) widening from $107 vs $75 oil
Emerging Market Bond Index (EMBI) spread — pre-conflict vs estimated current (bps)
JP Morgan Emerging Market Bond Index (EMBI) · IMF · Morgan Stanley EM Debt Monitor Q3 2025 · OECD: Egypt and Pakistan face rate differentials close to 5 ppts on maturing debt

India's reliance on Gulf remittances

Reserve Bank of India (RBI) 6th Round Remittances Survey 2024 · World Bank · Ministry of External Affairs · Reuters · The Hindu (2025–2026)

Total remittances to India (FY 23/24)
$118.7B
World's largest recipient — more than 12% of global remittances
Share from Gulf Cooperation Council (GCC)
37.9%
~$45B annually from UAE, Saudi Arabia, Kuwait, Qatar, Oman, Bahrain
Indian nationals in GCC countries
~9.1 million
Roughly half of all Indian migrants worldwide
Remittances as share of India's GDP
~3.4%
Larger than Foreign Direct Investment (FDI) inflows · counter-cyclical buffer
Where India's Remittances Come From — A Structural Shift Underway
RBI 6th Round Remittances Survey (FY 23/24) · Advanced economies (AEs) now surpass Gulf Cooperation Council (GCC) as top source for the first time
United States 27.7% United Kingdom 10.8% UAE 19.2% Other GCC 18.7% Other 23.6%
Advanced economies (US, UK, Canada, Singapore, Australia) now account for over 51% of inflows · GCC share has fallen from ~47% in FY 16/17 to ~38% in FY 23/24 · UAE remains India's second-largest single source
GCC remittances at risk from this conflict
Estimated GCC remittances to India annually~$45 billion
Indian workers in GCC — blue-collar share~70% construction, hospitality, retail
UAE — India's single largest Gulf source19.2% of total remittances (FY 23/24)
Saudi Arabia share~7–8% of total
10–20% drop in GCC remittances = annual loss$4.5–9B impact on balance of payments
Remittances finance India's trade deficit by~50% — crucial external buffer
Indians evacuated from Gulf (Mar 1–7, 2026)52,000+ evacuated · 12,000 stranded
2 Indian nationals killed (Sohar, Oman, Mar 13)First confirmed Indian fatalities
State-Wise Remittance Receipts — Which States Depend Most on Gulf Money
RBI 6th Round Remittances Survey (FY 23/24) · Kerala Migration Survey · Ministry of Statistics and Programme Implementation
Kerala's Gulf dependence: Kerala receives ~19.7% of all India's remittances. Remittances constitute over 36% of Kerala's State Domestic Product (SDP). Malappuram district has the largest proportion of emigrant households. An estimated 3 million Keralites work abroad — overwhelmingly in the Gulf. In 2021, Gulf remittances to Kerala were estimated at ~$11–13 billion annually. The Malabar region (northern Kerala) sends predominantly male, blue-collar workers to GCC construction sites — the most vulnerable category in any conflict.
Uttar Pradesh and Bihar: These two states continue to send large numbers of lower-skilled workers to Gulf construction and retail — particularly to Saudi Arabia and Qatar. While southern states increasingly prefer Advanced Economies (US, UK, Australia), UP and Bihar remain heavily GCC-dependent. Gulf conflict disruption hits these states disproportionately because alternative migration routes require higher education and English proficiency. Punjab is increasingly Canada-oriented, making it somewhat insulated.
Source: Reserve Bank of India (RBI) — Remittances Survey · World Bank — Migration and Remittances Data · Kerala Migration Survey (Centre for Development Studies, Trivandrum) · The Hindu
What Gulf Remittances Mean for India's Economy — The Numbers
World Bank · RBI · Ministry of External Affairs · Trading Economics
MetricValueContext
Total remittances to India (FY 23/24)$118.7 billionUp from $55.6B in FY 10/11 — more than doubled in a decade
Remittances as % of GDP~3.4%Stable at 3–3.5% since 2000 · larger than Foreign Direct Investment (FDI)
GCC share of total~37.9% (~$45B)Down from ~47% in FY 16/17 as workers shift to Advanced Economies
UAE alone19.2% of totalLargest single Gulf source · predominantly blue-collar workers
Trade deficit financed by remittances~50%Critical balance-of-payments buffer · counter-cyclical in nature
Kerala remittance share of State GDP>36%Among highest state-level remittance dependences in India (2021)
Projected total remittances by 2029~$160 billionWorld Bank projection — assumes no major structural disruption
10–20% drop in GCC remittances = annual loss$4.5–9 billionDirect impact on balance of payments and household incomes in affected states

Oil in the Middle East — Production, Type and Destination

US Energy Information Administration (EIA) · OPEC Annual Statistical Bulletin 2025 · Visual Capitalist · Logistics Middle East · IER · Kpler (Q1 2025 data)

Total Hormuz daily oil flow (2024)
20 mb/d
~20% of global petroleum consumption · more than 25% of seaborne oil trade
Global LNG via Hormuz (2024)
~20%
Primarily Qatar · 9.3 billion cubic feet per day (Bcf/d)
Global LPG via Hormuz
~29%
Plus ~33% of seaborne fertiliser trade
Asian share of Hormuz exports
89.2%
China 37.7% · India 14.7% · South Korea 12% · Japan 10.9%
Crude Oil Production by Country — Gulf Region (2024–25)
OPEC Annual Statistical Bulletin 2025 · EIA · Visual Capitalist (November 2025 data · million barrels per day)
Saudi Arabia produces ~9.51 mb/d — the world's second-largest producer after the US. It accounts for nearly 40% of all oil exports through Hormuz. Saudi Arabia and the UAE have pipeline bypass capacity (East-West Pipeline: 2.6 mb/d; Abu Dhabi Crude Oil Pipeline: 1.5 mb/d) — but even at full utilisation, roughly two-thirds of Gulf crude exports remain physically dependent on Hormuz.
Iraq (4.39 mb/d) and Iran (4.19 mb/d) have no pipeline bypass routes — 100% of their seaborne exports transit Hormuz. Iraq contributes 22.8% of all Hormuz crude flows. Iran, under sanctions, exports ~1.7 mb/d mostly to China. Kuwait (2.58 mb/d) and Qatar (primarily LNG) also have no bypass alternatives. Together, Iraq + Kuwait + Qatar = ~14 mb/d structurally tied to a single passage.
Share of Hormuz Crude Exports by Origin Country (Q1 2025)
Visual Capitalist · Kpler · EIA · Crude oil and condensate only · % of total Hormuz throughput
Saudi Arabia ~43.1% Iraq 22.8% UAE 12.9% Iran 10.6% Kuwait 10.1%
Where Hormuz oil goes — destination breakdown (Q1 2025)
China 37.7% India 14.7% South Korea 12.0% Japan 10.9% Other Asia 13.9% US + Other 10.8%
LNG and LPG — The Non-Crude Dimension of Hormuz
EIA World Oil Transit Chokepoints · IEA February 2026 Oil Market Report · Logistics Middle East (2025)
Qatar LNG — the dominant global supplier through Hormuz
Qatar LNG via Hormuz daily~9.3 billion cubic feet per day (Bcf/d)
UAE LNG via Hormuz~0.7 Bcf/d
Total LNG via Hormuz~20% of global LNG trade
Qatar share of global LNG exports~20% — largest single exporter
South Pars / North Field (shared reservoir)World's largest gas field — Iran + Qatar side
South Pars struck (Mar 18, 2026)70% of Iran's domestic gas · both sides affected
LPG and fertiliser — the hidden dependencies
Global Liquefied Petroleum Gas (LPG) via Hormuz~29% of global LPG trade
Global seaborne fertiliser via Hormuz~33% of total
India LPG imports via Hormuz~90% (cooking gas for 300M+ households)
Urea price (Mar 2026)$610/tonne vs $320 pre-conflict
Fertiliser disruption impactThreatens food production across South Asia and sub-Saharan Africa
Iraq and Kuwait bypass routesNone — 100% Hormuz dependent
Bypass Pipeline Capacity — Partial Alternatives to Hormuz
EIA · Institute for Energy Research · Even at full utilisation, ~14 mb/d remains structurally Hormuz-dependent
CountryPipelineDestinationCapacityCurrent status
Saudi ArabiaEast-West Pipeline (Petroline)Yanbu — Red Sea2.6 mb/d (max 5 mb/d)Yanbu port struck Mar 19
UAEAbu Dhabi Crude Oil Pipeline (ADCOP)Fujairah — Gulf of Oman1.5 mb/dOperational — limited capacity
IranGoreh–Jask PipelineJask — Gulf of Oman300,000 barrels/dayOperational but small
IraqNo sea bypass100% via Basra/HormuzNoneFully Hormuz-dependent
KuwaitNo sea bypass100% via HormuzNoneFully Hormuz-dependent
QatarNo sea bypass100% via HormuzNoneFully Hormuz-dependent
Source: Institute for Energy Research — Persian Gulf Oil Exports · EIA · Even with Saudi + UAE pipelines at maximum, ~14 mb/d of Gulf exports remain physically locked behind Hormuz