MULTILATERAL HEDGE: A REVIEW OF INDIA’S ENGAGEMENT WITH THE IEA AND I2U2 AS ENERGY DIPLOMACY RESPONSES TO STRAIT OF HORMUZ VULNERABILITY IN THE POST-COVID ERA

Abstract

The Strait of Hormuz is the world’s most critical energy chokepoint, through which approximately 25% of global seaborne oil trade transits annually. As the world’s second largest crude oil importer, India’s heavy dependence on Hormuz-routed energy supplies exposes it to profound supply disruption risks. The COVID-19 pandemic intensified these vulnerabilities by triggering supply chain disruptions and exposing India’s limited strategic reserves, accelerating its shift toward institutionalized multilateral arrangements. While existing literature addresses India’s energy vulnerability and its engagements with the International Energy Agency (IEA) and I2U2 independently, no study has analysed these simultaneous engagements as complementary institutional responses that together function as a hedge against Hormuz-linked supply risk. Drawing on hedging theory and three dimensions of economic, political, and structural hedging as evaluative criteria, this study applies qualitative document analysis to examine whether India’s IEA and I2U2 engagements meet the conditions of a multilateral hedge. The analysis finds these engagements constitute a credible hedging strategy combining emergency preparedness, alternative corridor construction, and strategic autonomy preservation. Keywords: Strait of Hormuz, Energy Diplomacy, Multilateral Hedging, International Energy Agency, I2U2, IMEC, Strategic Autonomy, India Energy Security, Post-COVID Energy Policy, Minilateralism.