What is the common examiner trap about Intl. Relations in UPSC exams?

They may ask about the percentage of global oil/LNG affected, but swap the figures (e.g., 20% of LNG vs 20% of crude). The article states it removed 'approximately one-fifth of the world’s seaborne crude and around 19 per cent of its liquefied natural gas supply.' Another trap is confusing the institutions involved (e.g., asking which body conducted the leadership poll – it's Gallup, not UN or World Bank).

What should UPSC aspirants remember about Intl. Relations for Prelims?

1. Target this Data: India's crude oil import dependence for FY 2025-26 is approximately 88.6%. 2. Target this Data: The closure of the Strait of Hormuz removed roughly 20 million barrels of oil per day. 3. Target this Data: The rupee fell past 93 per US dollar on March 20, 2026. 4. Target this Data: US global leadership approval (Gallup 2025) is 31% vs China's 36%.

International RelationsEconomy

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News 22 of 29

Strait of Hormuz Closure Cuts 20 Million Barrels/Day, India's Oil Import Dependence at 88.6% FY 2025-26, Rupee Falls Past 93/$

Q: The article mentions a poll showing declining US global leadership approval. Which organization conducts the 'Gallup World Poll'?

Gallup, Inc. (an American analytics and advisory company), The Gallup World Poll is conducted by Gallup, Inc., a renowned American analytics and advisory firm known for its public opinion polls worldwide. The other organizations are involved in development, finance, or global forums but are not the conductors of this specific poll.

Q: Consider the following statements regarding the geoeconomic implications discussed in the article: 1. The closure of the Strait of Hormuz impacted roughly one-fifth of the world's seaborne crude oil supply. 2. According to the Gallup World Poll 2025, China's global leadership approval rating surpassed that of the United States by the widest margin in nearly two decades. 3. In response to the crisis, India increased its budgetary allocation for the Chabahar Port project with Iran in the Union Budget 2026-27. Which of the statements given above is/are correct?

Both 1 and 2, Statement 1 is correct as the article states the closure removed 'approximately one-fifth of the world’s seaborne crude'. Statement 2 is correct as it mentions the US approval at 31% and China's at 36%, 'the widest gap in nearly two decades'. Statement 3 is incorrect; the article states the allocation for Chabahar Port was 'zeroed out' (reduced to zero), not increased.

Q: As per the article, what was India's approximate crude oil import dependence for the financial year 2025-26?

Approximately 88.6%, The article explicitly states: 'With crude oil import dependence at approximately 88.6 per cent for FY 2025-26...'. The other options are plausible but incorrect distractors.

Q: According to the article, what is presented as a primary strategic imperative for India in the wake of the Gulf crisis?

To treat energy diversification as an immediate economic imperative rather than a medium-term aspiration., The article's 'way forward' section explicitly states that for India, 'on energy security, diversification can no longer be treated as a medium-term aspiration' and that accelerating renewables, broadening imports, and building strategic reserves are 'now economic imperatives'. The other options contradict the article's analysis of India's complex position and the BRICS' lack of a common currency.

Intl. Relations Economy Security & DefenceHIGH

Target:UPSC GS-IIMPSCTeachingSSC GAPrelims HighMains High

08 Apr 2026

~2 min

Source: Indian Express

Key Data:20 million barrels/day88.6%93/$31% vs 36%32nd

Bodies:Reserve Bank of India (RBI)US Federal ReserveGallupObserver Research Foundation (ORF)BRICSNATOWTOIMF

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~2 min · Quick mode

What This Article Covers

1.The Strait of Hormuz closure in early March removed 20 million barrels of oil per day, causing a global supply shock and pressuring India's economy due to 88.6% oil import dependence.

2.Gallup World Poll shows US global leadership approval at 31% vs China's 36% in 2025, the widest gap in two decades, signaling a structural shift in global trust and influence.

3.India's strategic response includes zeroing out the Chabahar Port allocation in the 2026-27 Union Budget and focusing on energy diversification, Global South leadership, and strategic multipolarity as risk management.

The Big Picture

Prelims · HighMains · High

The closure of the Strait of Hormuz triggered a major oil supply shock, directly impacting India's inflation and currency. This crisis accelerates a shift in global power dynamics, with US leadership approval falling and China's rising, forcing India to urgently prioritize energy diversification and strategic autonomy.

Exam Lens

Quick Exam Facts From News

Oil Disruption (Strait of Hormuz)20 million barrels/day removed

India's Oil Import Dependence (FY 2025-26)Approx. 88.6%

Rupee Fall (March 20)Past 93/$ (worst drop in 4+ years)

US vs China Approval (Gallup 2025)US: 31%, China: 36%

India's Soft Power Rank (2026)32nd (Brand Finance Index)

1-Minute Revision

›Oil Disruption (Strait of Hormuz): 20 million barrels/day removed
›India's Oil Import Dependence (FY 2025-26): Approx. 88.6%
›Target this Data: India's crude oil import dependence for FY 2025-26 is approximately 88.6%.
›Target this Data: The closure of the Strait of Hormuz removed roughly 20 million barrels of oil per day.
›Target this Data: The rupee fell past 93 per US dollar on March 20, 2026.
›Target this Data: US global leadership approval (Gallup 2025) is 31% vs China's 36%.

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News Snapshot

⚡

Geoeconomic Shock

The Strait of Hormuz closure caused a historic oil market convulsion, removing 20% of seaborne crude and 19% of LNG supply, rewriting inflation calculus globally.

📉

India's Direct Exposure

India's high oil import dependence led to a sharp rupee depreciation past 93/$ and forced a strategic recalibration, including zeroing out the Chabahar Port budget.

🌍

Power Shift

US global leadership approval fell to a record low of 31%, while China's rose to 36%, representing the widest gap in nearly two decades and accelerating de-dollarisation urgency.

Detailed Analysis & Strategic Depth

Context / Background

The article analyzes the aftermath of a US-Israeli strike on Iran leading to the closure of the Strait of Hormuz. This event is framed not just as a regional conflict but as a structural shock to the post-World War II international order, where the US provided public goods like secure sea lanes in exchange for leadership deference. The fraying of this bargain weakens institutions like the WTO, IMF, and the dollar system.

Core Analysis & Implications

For India, the shock was direct: high oil import dependence (88.6%) hit inflation, the rupee (fell past 93/$), and RBI's rate calculus. Strategically, the crisis reveals a power vacuum. China capitalized by positioning as a mediator, accelerating Belt and Road outreach, and securing transit rights for its vessels through the Strait—a concession not given to Western powers. Russia filled energy supply gaps. The BRICS' de-dollarisation push, while lacking a common currency, gains urgency from this crisis. India's complex position—ties with the US, Iran, and stakes in West Asian stability—was managed by securing passage for its flagged vessels, a quiet diplomatic win.

Future Outlook / Way Forward for India

The article outlines a four-pronged strategic imperative for India: 1) Treat energy diversification (renewables, import origins, strategic petroleum reserves) as an immediate economic imperative, not a medium-term goal. 2) Leverage its ability to offer development financing without geopolitical conditions as a competitive advantage in the Global South. 3) View deepening engagement with the Gulf, Southeast Asia, and Africa as essential risk management, not just foreign policy. 4) Recognize that genuine strategic autonomy in a fracturing world order is the most consequential long-term task.

Key Facts at a Glance

Oil Disruption (Strait of Hormuz)20 million barrels/day removed

India's Oil Import Dependence (FY 2025-26)Approx. 88.6%

Rupee Fall (March 20)Past 93/$ (worst drop in 4+ years)

US vs China Approval (Gallup 2025)US: 31%, China: 36%

India's Soft Power Rank (2026)32nd (Brand Finance Index)

You've read the full analysis. Now test your understanding.

Practice exam-style questions based on this article.

Q1Static LinkageEasyUPSC, SSC, Banking

The article mentions a poll showing declining US global leadership approval. Which organization conducts the 'Gallup World Poll'?

Q2Statement-basedMediumUPSC, SSC

Consider the following statements regarding the geoeconomic implications discussed in the article:

1. The closure of the Strait of Hormuz impacted roughly one-fifth of the world's seaborne crude oil supply.

2. According to the Gallup World Poll 2025, China's global leadership approval rating surpassed that of the United States by the widest margin in nearly two decades.

3. In response to the crisis, India increased its budgetary allocation for the Chabahar Port project with Iran in the Union Budget 2026-27.

Which of the statements given above is/are correct?

Q3Data-centricEasyUPSC, SSC, Banking

As per the article, what was India's approximate crude oil import dependence for the financial year 2025-26?

Q4Application/ImpactMediumUPSC

According to the article, what is presented as a primary strategic imperative for India in the wake of the Gulf crisis?

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Strait of Hormuz Closure Cuts 20 Million Barrels/Day, India's Oil Import Dependence at 88.6% FY 2025-26, Rupee Falls Past 93/$

Exam Lens

Quick Exam Facts From News

1-Minute Revision

News Snapshot

Geoeconomic Shock

India's Direct Exposure

Power Shift

Detailed Analysis & Strategic Depth

Context / Background

Core Analysis & Implications

Future Outlook / Way Forward for India

Prelims Flashpoints

Key Facts at a Glance