New Delhi, July 14 -- India's oil import bill is back in focus after US President Donald Trump's proposal on Monday to levy a 20% fee on vessels transiting the Strait of Hormuz sent crude prices soaring, raising concerns over the country's inflation and economic growth. While Trump later dropped the fee plan in favour of a blockade targeting only ships linked to Iran, the flare-up has underscored India's vulnerability to disruptions in the energy markets. The development drove Brent crude by 5% to over $87 a barrel on Tuesday, before easing to around $85 following Trump's flip-flop.

The risks are significant for India, which imports about 90% of its crude oil requirements and spends more than $120 billion annually on crude imports. A sus...