India, March 3 -- As the United States and Israel escalate military operations against Iran, global markets are bracing for the unthinkable: a closure of the Strait of Hormuz, the world's most critical oil chokepoint. Iran claims that it has already the Strait, but it is still not clear if this is a complete closure.

For India, which depends heavily on Middle East crude, this could translate into higher fuel prices, inflationary pressures, and economic instability.

The Strait of Hormuz lies between Iran and Oman, connecting the Persian Gulf to the Gulf of Oman and the Arabian Sea. At its narrowest, it is just 33 kilometres wide, with shipping lanes barely 3 kilometres wide in each direction.

Despite its size, roughly 20% of the world's...