India prepares to resume transiting the Strait of Hormuz, dispatches oil tankers to the Middle East for loading.
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Faced with ongoing tensions in energy supply, India is preparing to redeploy oil tankers to cross the Strait of Hormuz, marking the country’s first major attempt to restore this crucial route since the outbreak of the Middle East conflict.
On May 20, Bloomberg cited informed sources saying that the plan has basically been finalized. Once the Indian government gives final approval, ships will begin attempting to cross the strait. Shipping Corp. of India is ready to return to the Persian Gulf, and will depart once it receives approval from the Indian Navy and orders from refiners.
The Strait of Hormuz carries about one-fifth of the world’s oil flow. Since the outbreak of the Middle East conflict at the end of February, this route has virtually come to a standstill, causing severe supply shocks and price pressure for countries like India that highly depend on Middle Eastern energy. It remains unclear whether the US and Iran have given India the green light for passage.
Diplomatic mediation, naval escorts, insurance guarantees
India is advancing simultaneously on the diplomatic and military fronts, hoping to restore energy supplies via the Strait of Hormuz.
According to Bloomberg, India’s Foreign Minister Subrahmanyam Jaishankar met Iran’s Foreign Minister Abbas Araghchi last week during the BRICS summit in New Delhi. The meeting is widely seen as part of India’s diplomatic efforts to secure passage permissions.
On the military front, the Indian Navy has doubled the number of warships in the region and strengthened aerial surveillance. Currently, Indian warships are escorting vessels flying the Indian flag as well as tankers bound for India, with the escort extending to the segment after safely exiting the strait.
Meanwhile, the Indian government has recently launched a maritime insurance plan to provide ongoing coverage for Indian ships and cargo operating in high-risk waters including the Strait of Hormuz, further clearing commercial obstacles to reopening the route.
High cost of alternative supplies, short-term Middle East dependence hard to break
The fundamental reason India is eager to restart the Hormuz route is that alternative supply options are costly and time-consuming. According to informed sources, oil from other regions takes longer and costs more to reach India, and India still hopes to maintain import channels from traditional Middle Eastern suppliers.
After the conflict erupted, India increased its purchases of crude from other sources, but its dependence on the Middle East remains high. Since the outbreak of the war at the end of February, a small amount of non-Iranian oil has trickled out through the Strait of Hormuz, but the conditions allowing passage are ambiguous and unstable, and overall flow is only a tiny fraction of pre-conflict levels.
Ongoing energy supply disruptions have significantly hit India’s economy. Under the dual pressure of surging oil prices and the rupee hitting historic lows, Prime Minister Modi has openly called on citizens to save fuel and foreign exchange. The sharp rise of energy bills is eroding India's economic resilience.
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