Iran-Israel War: The increasing conflict in West Asia has again brought the Strait of Hormuz, one of the world’s most important sea routes, into the spotlight. Till now it was considered important mainly for energy supply, but in 2026 it has also emerged as a major digital chokepoint. This place presents a double challenge for India. On the one hand, a large amount of oil and gas comes to the country from here, and on the other hand, the undersea cables carrying internet data also pass through this area. As the war situation in West Asia is becoming serious, the risks for India also seem to be increasing.
Danger to undersea cables
Today, about 99 percent of the world’s international data is sent through fiber-optic cables laid under the sea. A large part of India’s Internet traffic, especially from Western countries, passes through the Gulf region. Many important cable systems connecting Mumbai and Chennai to Europe and West Asia pass through this route. These include cables like SEA-ME-WE 4, I-ME-WE and FALCON. These cables are considered the backbone of India’s digital network.
However, due to deteriorating conditions, there are problems in the repair and maintenance of these cables. Repair work began in late 2025 after some cables near Jeddah failed, but repair ships had to halt work due to the threat of missile and drone attacks. If a cable gets cut in such a situation, the internet speed may reduce and areas like financial transactions or data centers may be affected.
Pressure on energy supply is also increasing
India’s economy is still largely dependent on oil and gas imports. By March 2026, about 50 to 55 percent of India’s crude oil and more than half of its LNG shipments pass through this sea route.
But due to the war, the movement of ships on this route has reduced considerably. Many tankers are stopping outside the strait due to security reasons. This can have a direct impact on India’s energy supply.
The situation is more sensitive in the case of LNG because India’s largest supplier is Qatar. If this route remains blocked for a long time, important sectors like power generation and fertilizer industry may be affected. At present, the government has reserves of oil and fuel for a limited period, but in case of a prolonged crisis, the challenge may increase.
Possible impact on economy and IT sector
Due to increasing tension in this region, the global oil market is also being affected and fluctuations in prices are being seen. If the situation persists for a long time, pressure on India’s economy and currency may increase.
Apart from this, India’s IT and digital services sector can also be affected by this situation. If there is a disruption in data traffic, remote work and online services may be affected.
India is looking for new options
To deal with this challenge, the Indian government is trying to diversify energy sources and trade routes. Consideration is being made to increase oil imports from Russia, America and other countries. Besides, big projects like India-Middle East-Europe Economic Corridor are also being seen as strategic options.
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