India turns to Latin American, African oil after Hormuz disruption

The disruption in the Strait of Hormuz due to regional conflict has forced global shifts in energy procurement. Indian refiners moving toward Latin American and African sources indicates potential volatility in regional energy costs. Industrial equipment buyers must account for higher operational expenses and energy surcharges when budgeting for power-intensive manufacturing processes in the Middle East.

Supply chain professionals should monitor shipping routes for equipment coming from East Asia, as disruptions in the Gulf impact more than just oil. Increased insurance premiums for maritime freight in the region are expected to drive up the landed cost of imported heavy machinery and industrial components throughout 2026.