India is preparing to source crude oil from outside the Persian Gulf and cut its own refined-product exports should the Strait of Hormuz be blocked to ship traffic, Oil Minister Hardeep Puri said Thursday.

The Strait of Hormuz, a crucial passage for a significant portion of the world's oil and gas supply, remains open despite Iran's threats of closure. Analysts suggest such threats serve as diplomatic tools,

As tensions escalate in the Strait of Hormuz following the Iran-Israel conflict, credit rating agency ICRA has warned that any sustained disruption in oil and gas supplies through the chokepoint could significantly strain India's economy — pushing up oil imports, widening the current account deficit (CAD), and delaying private sector investment.