India is preparing to source crude oil from outside the Persian Gulf and cut its own refined-product exports should the Strait of Hormuz be blocked to ship traffic, Oil Minister Hardeep Puri said Thursday.

India is preparing to diversify its crude oil sources beyond the Persian Gulf and potentially reduce refined-product exports in response to concerns about a possible blockage of the Strait of Hormuz.

As tensions escalate in the Strait of Hormuz following the Iran-Israel conflict, credit rating agency ICRA has warned that any sustained disruption in oil and gas supplies through the chokepoint could significantly strain India's economy — pushing up oil imports, widening the current account deficit (CAD), and delaying private sector investment.