India is preparing to send vessels through the Strait of Hormuz to load energy cargoes from Middle East suppliers, marking the first time since the Iran conflict began that the country will undertake such shipments. According to reports from Bloomberg, the plans are finalized and ships will start attempting to cross the strait once the government gives its final approval. State-owned Shipping Corp. of India is ready to resume operations once it receives approval from the Indian Navy and business from oil refiners. The shipping corporation is prepared to go back to the Persian Gulf once it has the necessary approvals and commercial arrangements in place.
Shipping through Hormuz, which handles nearly one-fifth of global oil flows, has been virtually halted since the Iran war began at the end of February, causing major disruptions and price shocks for countries like India, the world's third-largest crude importer. As reported by Bloomberg, while non-Iranian oil shipments have continued to move through Hormuz since the conflict began, cargo flows remain far below normal levels and transit conditions continue to remain uncertain. The disruption has triggered supply concerns and pushed up crude prices globally, highlighting the severity of the impact on global energy supply chains.
Iranian officials have provided significant reassurance about commercial movement through the Strait of Hormuz following diplomatic engagements. Iranian Foreign Minister Abbas Araghchi met with India's External Affairs Minister Subrahmanyam Jaishankar in New Delhi on the sidelines of a BRICS summit, discussing the ongoing West Asia conflict and its implications for maritime trade and energy security. According to Bloomberg, Araghchi stated that Iran remains committed to ensuring safe commercial movement through the waterway, emphasizing that 'Iran is a reliable partner of all friendly nations, who can rely on the safety of commerce'. The Iranian minister noted that 'Iran has allowed a number of Indian vessels to pass' and that 'safe passage of all vessels is our policy and in our interest'.
India's Navy has doubled the number of warships in the region and increased aerial surveillance to monitor the area, with warships escorting Indian-flagged ships and vessels headed to India once they safely exit the strait. According to Bloomberg, the Indian Navy has doubled the number of warships deployed in nearby waters and intensified aerial surveillance operations to monitor developments around the Strait of Hormuz. The government has also introduced a marine insurance initiative aimed at ensuring uninterrupted insurance coverage for ships and cargoes travelling through conflict-hit maritime zones. However, uncertainty remains over whether Iran or the US, which are separately blockading the strait and surrounding waters amid the war, have formally agreed to allow Indian ships safe passage.
India wants to continue importing energy from its traditional West Asia oil producers because supplies from alternate sources would take a longer time to reach the country and be costlier, as reported by Bloomberg. Although India has sharply increased crude imports from Russia after Western sanctions on Moscow, Russian supplies also carry geopolitical risks because of potential US sanctions. The Trump administration recently issued a waiver allowing the sale of Russian crude oil and petroleum products already loaded on tankers. India imports nearly 90% of its crude oil requirements and around half of its natural gas needs, making it particularly vulnerable to supply disruptions in the Gulf region. Prime Minister Narendra Modi has urged citizens to conserve fuel and foreign exchange amid surging oil bills and a plunge in the rupee to a record low.
