India should diversify its crude import routes, expand strategic reserves and cut reliance on Gulf suppliers to better withstand future disruptions, according to an S&P Global report. The report said recent Middle East tensions raised risks to shipping through the Strait of Hormuz, affecting an estimated 15 million barrels per day of global oil flows. It added that Indian refiners have lost around 20% of pre-conflict Middle East crude supplies and are accelerating purchases from alternatives including Russia, the US, Brazil and Nigeria. India’s crude processing fell to about 5.23 million bpd in April 2026, down 5.8% from March.

India raised its customs duty on gold imports to 18.4% from 9.2% starting May 13, 2026, and has not yet reinstated banks as designated gold importers, leaving only three authorised entities. Monthly gold import volumes have fallen to 2530 metric tonnes (MT) from 75100 MT previously, a drop of more than 65%, according to a senior government source. As the world’s second-largest gold consumer after China, India’s import slump is affecting global physical gold flows. Silver duties were also raised, and the tighter import channel is expected to exert similar spillover pressure.

India and Japan have formally adopted implementation rules for the Joint Crediting Mechanism, setting the operational framework for bilateral low-carbon projects and the transfer of emission-reduction credits. Separately, a Zero Carbon Analytics report says Japan’s resales of US LNG to Asia, including India, in 2020–2025 generated annual supply-chain emissions comparable to 17 coal-fired power plants. The report attributes the footprint largely to methane leakage and combustion, underscoring the LNG supply chain’s hidden carbon costs.

Brent crude fell 0.49% to USD 78.44 per barrel, its lowest level in nearly three months. India’s Sensex and Nifty extended a four-session winning streak in early trade, up 271.61 points and 55.35 points, respectively. Analysts said softer oil prices could ease inflation pressures, improve the trade balance and support corporate earnings. Foreign investors were net sellers of Indian shares worth Rs 749.18 crore on Tuesday.

India’s central government and the states of Assam and Nagaland have signed a tripartite memorandum of understanding to remove long-standing administrative and operational restrictions and advance development of the Assam-Nagaland oil and gas belt. The area is estimated to hold about 500 million tonnes of petroleum and natural gas resources, but current output is only around 1,000–1,500 barrels a day. Under the agreement, production could increase more than tenfold over time, potentially within a decade. Assam currently accounts for 14% of India’s crude oil output and 10% of its natural gas production, and additional supply would strengthen domestic energy self-reliance.

An Indian government official warned that LPG availability is unlikely to improve soon even after the US and Iran announced a ceasefire and said the Strait of Hormuz would be opened. The official said the extent of damage to Gulf LPG production sites, particularly in Qatar, remains unclear, keeping supply tight and prices elevated. Since the conflict began on February 28, domestic cooking gas prices in India have risen by Rs 89, while commercial cylinders have jumped from Rs 1,884 in March 2026 to about Rs 3,100 per cylinder.