Amid reports of a possible second round of talks between Iran and the US, Iran’s deputy foreign minister has said Tehran rejects any temporary ceasefire and is seeking a comprehensive end to the war across the region.The US blockade of Iranian ports and ships in the Strait of Hormuz has meanwhile entered its fourth day, affecting the global energy supplies. The present crisis also draws comparison with past oil shocks, like the oil crises during 1973, 1979, the Gulf War, the 2008 financial crisis, and the Russia-Ukraine war. In the previous part of this article, the oil crises of 1973 and 1979 were covered. Let’s examine the other crises and their impact on India.The 1990 Gulf crisisAnother major oil crisis occurred in 1990 with the onset of the Gulf war. Following the Iraqi invasion of Kuwait in 1990, a US-led coalition of over 30 countries launched ‘Operation Desert Storm’. Even before the war, tensions between Iraq and Kuwait had strained oil supplies, and the outbreak of the war further aggravated the situation. Oil prices doubled, while India faced one of its most severe balance of payments crises since independence. By 1991, Indian foreign exchange reserves had fallen to $1-1.2 billion, which was not enough to cover the costs of oil imports. Repeated oil shocks, alongside domestic factors, further complicated the situation for India. The uptick in oil prices inflated India’s import bill. Due to the disruption in trade routes due to the war, India had to rely on costlier alternative routes. Additionally, the return of Indian expatriate workers from the Gulf reduced remittance inflows, further straining the economy. Story continues below this adIndia pledged approximately 67 tonnes of gold to raise emergency funds to keep the economy afloat, according to official RBI records. Of this, about 47 tonnes were airlifted to the Bank of England and 20 tonnes to the Union Bank of Switzerland, raising about $600 million in foreign currency. Read First Part | How India managed oil embargo and energy crises of 1973 and 1979The 2008 financial crisisThe 2008 financial crisis was primarily triggered by the collapse of the housing bubble in the US, which led to the worst global economic downturn since the Great Depression. As a complex chain reaction unfolded, the oil market crashed with oil prices fluctuating from $100 in January 2008 to $147 by July 2008, and then falling close to $30 by the end of 2008. While oil-exporting countries in West Asia and elsewhere saw windfall gains, the oil-importing countries like India faced severe trade deficits. The sudden spike in oil prices in mid 2008 pushed inflation in India to 12.9 per cent in August 2008. At the same time, GDP growth fell from 9.4 per cent to 6.7 per cent in 2008-09, while the fiscal deficit reached 6.2 per cent of GDP. To manage this shock, the government increased the prices of petrol by 5 rupees per litre, diesel by 3 rupees per litre, and LPG by 50 rupees per cylinder. At the same time, customs duties on oil were cut down to zero, and oil bonds worth 94,600 crore were issued to oil marketing companies to compensate for under recoveries. Story continues below this adThe Russia-Ukraine warMore recently, India’s energy import profile was affected by the Russia-Ukraine war that has been going on since 2022. India’s economic ties and energy imports from Russia date back to the Soviet era. But following the collapse of the Soviet Union in 1991, India increasingly turned to Gulf countries. Must Read | Beyond Trending: What is “illiberal” democracy?The outbreak of the Russia-Ukraine war largely reshaped this trajectory. In response to the Western sanctions, including a $60 per barrel cap on Russian seaborne crude, Russian oil was offered at discounted rates. India capitalised on this opportunity by increasing imports of Russian crude. In February this year, US President Donald Trump claimed that India had agreed to stop buying crude from Russia, while announcing the reduction of tariffs on the country to 18 per cent from 50 per cent.Following the outbreak of the US-Israel war against Iran, Washington issued a sanctions waiver for Russian crude specifically for India in the first week of March. But the one-month sanctions waiver on buying Russian oil expired on April 11.The Strait of Hormuz crisisStory continues below this adThe US-Israel war against Iran that began on February 28 has resulted in one of the worst global oil shocks. As tensions in the Strait of Hormuz continue to evolve, oil markets remain highly volatile to geopolitical developments. On Wednesday (April 15), the White House sounded hopeful about reaching an agreement to end the war with Iran, while also warning of increasing economic pressure against Tehran if it remains defiant. Amid hopes of de-escalation in US-Iran tensions, oil prices dropped in early trade Thursday (April 16). The Iran war has affected India’s overall energy imports, be it crude oil, liquefied natural gas (LNG), or liquefied petroleum gas (LPG). India’s real economic growth rate is also expected to dip below the crucial 7 per cent mark in the current financial year due to the war, according to a new assessment by the World Bank. Don't Miss | Biologics: Science behind modern medicineIndia’s response These oil shocks have caused significant losses to economies around the world. In response, countries have sought to strategise to minimise the impact of “weaponisation” of oil. For example, the 2008 financial crisis and the resulting oil crisis became one of the primary drivers of the shale oil revolution in the US. Story continues below this adSimilarly, India has taken a series of policy measures to better absorb energy market volatility. For example, following the 1973 oil crisis, India increased its investment in its domestic coal production, tapping into its abundant reserves. The 1979 oil shock also prompted policy rethinking that gradually culminated in the 1991 economic liberalisation. In addition, India has also sought to diversify its energy imports to reduce excessive dependence on a single source. It has developed SPRs to provide a buffer during periods of supply disruptions. India’s experience with past oil shocks highlights a pattern in which global energy volatility manifests as domestic economic strain through higher inflation, trade imbalances, and slower growth. As geopolitical tensions in the Strait of Hormuz continue to evolve, this historical susceptibility remains increasingly salient. While policy interventions, ranging from the diversification of import sources to the establishment of strategic reserves, have undoubtedly enhanced resilience, exposure to external shocks cannot be overlooked. Story continues below this adPost read questionsExamine the implications of tensions in the Strait of Hormuz for India’s energy security and economic stability.How do geopolitical conflicts influence global energy markets? Analyse with reference to recent developments involving Iran and Russia.Compare the impact of the 1990 Gulf War, the 2008 financial crisis, and the Russia–Ukraine war on India’s energy supply and economy.Evaluate India’s policy responses to global oil shocks. Have measures like diversification and strategic petroleum reserves been effective?Story continues below this adDiscuss the role of strategic petroleum reserves (SPRs) in ensuring India’s energy security.(Stuti Gogoi is a Doctoral Candidate at the Centre for West Asian Studies, JNU.)Share your thoughts and ideas on UPSC Special articles with ashiya.parveen@indianexpress.com.Click Here to read the UPSC Essentials magazine for March 2026. Subscribe to our UPSC newsletter and stay updated with the news cues from the past week.Story continues below this adStay updated with the latest UPSC articles by joining our Telegram channel – IndianExpress UPSC Hub, and follow us on Instagram and X.