Pratik Bijlani –
India is preparing to resume sending vessels through the Strait of Hormuz to load crude oil and liquefied petroleum gas from Middle Eastern suppliers despite the continuing US-Iran conflict that has severely disrupted maritime trade and global energy flows over the past several weeks. The move marks the first planned return of Indian-linked energy shipping through the strategically vital waterway since tensions escalated earlier this year.
According to reports, the plans have already been finalized, with vessels expected to commence voyages once final clearance is provided by the Indian government. State-owned Shipping Corporation of India is reportedly prepared to resume operations in the Persian Gulf after receiving approval from the Indian Navy and commercial commitments from domestic oil refiners.
The Strait of Hormuz, through which nearly one-fifth of global oil flows normally pass, has witnessed major disruption since the outbreak of the US-Iran conflict at the end of February. The crisis has led to soaring freight costs, sharp energy price fluctuations, and severe LPG shortages across several Asian economies, including India, which remains heavily dependent on Middle Eastern suppliers for its energy needs.
Although India has increased crude imports from Russia and other alternative suppliers, the Middle East continues to account for the majority of the country’s oil and gas requirements. Officials reportedly believe that replacing Gulf supplies entirely would prove both costlier and operationally more difficult in the short term.
India’s External Affairs Minister Subrahmanyam Jaishankar recently held discussions with Iranian Foreign Minister Abbas Araghchi during a BRICS summit in New Delhi, where maritime trade and energy security were among the key topics discussed.
To support operations in high-risk waters, India has significantly increased naval surveillance in the Arabian Sea and has already escorted several commercial vessels through the region in recent weeks. The government has also introduced a marine insurance programme aimed at ensuring uninterrupted coverage for Indian ships and cargoes operating in conflict-prone waters, including the Strait of Hormuz.
Marex Media