The duration of disruption in the Strait of Hormuz remains the single most consequential variable for India’s external sector and inflation outlook, the Finance Ministry said in its Monthly Economic Review for May 2026. The ministry warned that prolonged energy supply interruptions could amplify price pressures and dent growth prospects. Strait of Hormuz: The key ‘risk factor’ The Department of Economic Affairs (DEA) said the global environment has become significantly more challenging following the West Asia conflict, and underscored the centrality of the Hormuz disruption to India’s economic trajectory.