India Plans Hormuz Tanker Operations as Trump Ceasefire Eases Oil Crisis

India is preparing to send oil tankers through the Strait of Hormuz for the first time since the Iran conflict began, marking a significant shift in the country's energy supply strategy. According to sources familiar with the matter, State-owned Shipping Corp. of India is ready to go back to the Persian Gulf once it has approval from the Indian Navy and it has business from oil refiners. The plans are finalised and ships will start attempting to cross the strait once the government gives its final approval, though details on timing and volumes remain undisclosed. This represents a crucial development as Shipping through Hormuz, which handles roughly a fifth of global oil flows, has been virtually halted since the Iran war began at the end of February, causing major disruptions for India, the world's third-largest crude importer. The reopening would provide significant relief by easing concerns over oil supplies and reducing pressure on inflation.

A liquefied natural gas tanker is heading toward the Strait of Hormuz, testing the waters as the US and Iran reach a deal to reopen the waterway. According to ship-tracking data compiled by Bloomberg, the LNG carrier, under a long-term charter with an Indian state-owned importer, is heading into the eastern arm of Hormuz, toward the Gulf of Oman. The tanker picked up a shipment from Qatar's Ras Laffan facility around March 1, 2026, and appears to be testing the reopened corridor. European natural gas prices fell as much as 5.8 per cent in early Asian trading on Monday, with resuming LNG traffic through Hormuz helping ease a supply crunch that had kept gas prices elevated since March. Oil prices also slumped at the open, with Brent down almost 5 per cent, reflecting broader market confidence in the reopening agreement.

Indian refiners have successfully secured sufficient energy supplies to navigate the ongoing Middle East crisis, with crude oil inventories built up to meet demand through at least August and LPG supplies expected to remain comfortable until at least mid-July. According to sources cited by Reuters, refinery sources confirmed they are well covered on the LPG front at least till mid-July, and crude is not a problem. The energy crisis had triggered sharp increases in crude oil prices, shipping insurance premiums and freight rates, with global oil prices rising to as high as $119 per barrel at the peak of war-related disruption, from $70-72 a barrel in February. The government on March 27 slashed excise duty on petrol and diesel by ₹10 per litre each and raised prices by about ₹7.50 per litre each post assembly elections, while CNG rates were up ₹6 per kg and LPG prices increased by ₹89 per 14.2-kg cylinder in two instalments. State-owned fuel retailers have continued to incur losses as pump prices remained below import-parity levels, with one industry official noting that state-owned fuel retailers booked losses in one quarter that were equal to the profit they earned in the entire year.

India has significantly strengthened its naval presence in the region to support safe energy operations. 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. The government recently launched a marine insurance initiative to provide uninterrupted coverage for Indian ships and cargoes operating in high-risk waters, including the Strait of Hormuz. While non-Iranian oil has dribbled out through Hormuz since the war began, the precise conditions allowing those transits have been patchy and unclear, with flows remaining at a tiny fraction of their pre-conflict levels. The reopening would reduce the risk of supply delays and help refiners maintain predictable procurement schedules.

Indian refiners have been actively procuring crude oil and LPG cargoes through strategic partnerships with Middle Eastern suppliers. State-run Hindustan Petroleum Corp (HPCL) acquired 4 million barrels of Murban crude from the United Arab Emirates for August delivery, purchased from Totsa (the trading arm of TotalEnergies) and Mercuria at a premium of about 40 cents per barrel to the July Dated Brent benchmark. HPCL also bought 2 million barrels of crude from Brazil and West Africa for processing at its 180,000-barrel-per-day Rajasthan refinery. Other major refiners including Indian Oil Corp (IOC) and Mangalore Refinery and Petrochemicals Ltd (MRPL) have similarly turned to spot tenders to procure crude in recent weeks. The government and refiners stepped up efforts to diversify crude sourcing beyond traditional Gulf suppliers, with Indian refiners increasing engagement with suppliers across Russia, Africa, the United States and Latin America to ensure alternative cargoes.