India eyes return of oil tankers to Hormuz as Iran war disrupts flows

India is preparing to resume tanker sailings through the Strait of Hormuz to secure crude oil supplies from the Middle East, in a move that would mark the first such crossings since the Iran conflict disrupted shipping routes earlier this year.

The plans have been finalised, and vessels operated by the state-owned Shipping Corporation of India are expected to begin transiting the waterway once final government approval is granted, the people said. No timing or cargo volumes were disclosed, Caliber.Az reports per The Economic Times.

Shipping through the Strait of Hormuz — a critical chokepoint for roughly a fifth of global oil flows — has been heavily curtailed since the outbreak of hostilities involving Iran, triggering supply disruptions and volatility in energy markets.

It remains unclear whether Iran or the United States have issued any formal clearance for renewed transits, a factor seen as essential for sustained shipments.

India’s External Affairs Minister Subrahmanyam Jaishankar met Iranian Foreign Minister Abbas Araghchi in New Delhi last week on the sidelines of a BRICS meeting, underscoring ongoing diplomatic engagement.

New Delhi is seeking to maintain flows from traditional Gulf suppliers, arguing that alternative crude sources would take longer to arrive and prove more costly. India, the world’s third-largest oil importer, has increasingly diversified purchases but remains heavily dependent on Middle Eastern supply.

Security measures in the region have been stepped up, with Indian naval assets reportedly doubling their presence and increasing aerial surveillance. Warships are also escorting Indian-flagged vessels once they clear the strait, the people said.

The Shipping Corporation of India is understood to be awaiting clearance from both the Indian Navy and domestic refiners before resuming operations.

India has also introduced a marine insurance support scheme to ensure coverage for vessels operating in high-risk waters, including the Strait of Hormuz, as commercial insurers remain cautious.

While some non-Iranian cargoes have continued to move through the strait in limited volumes, flows remain well below pre-conflict levels and subject to shifting security conditions.

Energy imports from Russia have helped offset some supply pressures, though exposure to sanctions risk remains a concern for Indian refiners, despite recent US waivers covering certain shipments already en route.

Prime Minister Narendra Modi has urged conservation measures as rising import costs and currency pressures weigh on the economy, with the rupee hitting record lows in recent months.

By Aghakazim Guliyev