New Delhi, June 16 -- The Middle East is once again spiraling into instability-and this time, the economic collateral could be global. A widening conflict stretching from the Red Sea to the Strait of Hormuz threatens not only oil supplies but the very arteries of international trade. Tanker traffic is being rerouted, insurance premiums are soaring, and energy markets are edging back toward the $100 per barrel threshold.

For India, which imports over 85 percent of its crude oil, this is more than just an external crisis. It is a direct economic threat. The war has sent tremors through New Delhi's policy establishment, forcing urgent recalibrations on everything from energy procurement and trade finance to maritime security and supply chai...