New Delhi, June 23, 2026.

Global energy markets are entering a new phase of adjustment following the June 17 memorandum of understanding (MOU) between the United States and Iran, according to the latest analysis from S&P Global Energy. While the reopening of the Strait of Hormuz is expected to facilitate the recovery of energy flows and strengthen market confidence, market participants continue to assess That marketnormalization,and inventory replenishment will take time.

During a recent roundtable conference in New Delhi, experts from S&P Global Energy highlighted that these developments underscore the critical importance of diversified supply chains, resilient infrastructure, and strategic resource access. Across upstream markets, LNG trade and maritime logistics, the ability to adapt to changing geopolitical realities is emerging as the key determinant of long-term energy security.

Energy Markets ResilientToChanging Global Dynamics:The effective closure of the Strait of Hormuz resulted in a 15 million barrels per day (b/d) cut in Gulf liquids production. However, the price reaction has been surprisingly limited due to aggressive inventory and demand management globally, including sharp reductions in crude imports by China and Japan, and higher exports from the US.

"The effective closure of the Strait of Hormuz was the largest oil supply disruption in history. It was—and for the moment, still is—extraordinary. But what is surprising—even extraordinary—is the limited price reaction," said Jim Burkhard, Vice President and Head of Research for Oil Markets, Energy and Mobility, S&P Global Energy."If flows via Hormuz and Gulf production do begin to recover, it will take time—and global oil inventories will continue to fall through June and July. This means upward price pressure could return as inventories fall to even lower levels."

Upstream Resilience Becomes India’sStrategic Imperative: Global upstream markets are increasingly prioritizing resource security, portfolio diversification and disciplined investment. For India, energy security is now fundamentally linked to upstream access and international portfolio diversification.

"Looking ahead, the current environment reinforces a clear directional shift for both global and Indian upstream sectors: resilience is becoming the defining metric of value. Access to stable resources, accelerated project timelines, and diversified supply portfolios are taking precedence over pure scale or cost optimisation," said Nick Sharma, Executive Director, Upstream Energy, S&P Global Energy.

India’s LNG Market Demonstrates Remarkable Flexibility:The Strait's closure disrupted approximately 17% of global LNG supply. However, India, the world’s fourth-largest LNG buyer, demonstrated remarkable resilience. By successfully diversifying supply sources to include Oman, the US, Nigeria, and Angola, India’s LNG imports saw minimal impact, dropping only 5% and 2% year-over-year in April and May 2026, respectively.

"India is expected to retain some of this diversified LNG sourcing considerations to mitigate future disruptions, potentially influencing its long-term sourcing strategies," said Johan Utama, Principal Research Analyst, S&P Global Energy.

Shipping Sector Adapts To Redrawn Trade Routes:The conflict severely constrained flows through the Strait of Hormuz, with vessel movements plummeting to 10% of pre-conflict levels. Despite this, the energy system adapted through alternative routing via the Red Sea and expanded ship-to-ship transfers east of Hormuz, helping effective Middle East crude exports rebound to over 10 million b/d in June.

"The past months have underscored the adaptability of both producers and consumers. The industry’s ability to reroute supply, optimise logistics, and secure alternative barrels has helped mitigate what could have been a far more severe disruption to global energy markets," said Benjamin Tang, Director and Global Head of Liquid Bulk, Commodities at Sea, S&P Global Energy.