India has been navigating the oil shock from the ongoing conflict involving Iran better than anticipated, with effective interventions from the Reserve Bank of India (RBI) and diversification of crude sourcing by refiners. However, US President Donald Trump's recent announcement of a naval blockade on Iranian ports poses a significant risk of escalating the energy crisis. If sustained, this blockade could push India into a broad-based 'everything crisis,' impacting numerous sectors from consumer goods to agriculture. The blockade threatens to disrupt the flow of oil and liquefied natural gas (LNG) through the Strait of Hormuz, where a substantial portion of India's energy imports transit. This disruption could lead to increased freight and insurance costs, thereby raising energy prices above $100 per barrel. The ripple effects of the oil shock are already being felt, with toy manufacturers predicting price hikes of 10-40% due to rising raw material costs linked to petrochemicals. Other industries, including fast-moving consumer goods (FMCG) and fertilizers, are also bracing for increased costs, which could lead to food inflation. If the blockade results in prolonged conflict, the cumulative effects on inflation, currency stability, and economic growth could create a systemic risk for India, moving from a managed shock to an 'everything crisis.'