New Delhi, March 16 -- The ongoing West Asia crisis and disruptions around the Strait of Hormuz could create short-term stress for India's crude supply chain, though diversified sourcing and inventories should help cushion the immediate impact, according to a report by Morgan Stanley.

The brokerage noted that India remains exposed to Middle East oil flows because a significant share of its imports transit the region. "40-50 per cent of India and China's oil needs pass through the Strait of Hormuz," the report said, highlighting the vulnerability of Asian energy supply chains to disruptions in the Gulf.

India also sources a large portion of its crude from the Middle East. The report estimates that "46 per cent of India's crude basket is ...