India urges Iran to fast-track fuel shipments amid ceasefire window

India is pressing Tehran to expedite the movement of oil and gas cargoes bound for its ports, seeking to take advantage of a fragile two-week ceasefire window to rebuild depleted fuel stocks, a shipping ministry official said.

Indian refiners are aiming to accelerate imports from the Gulf, but industry executives cautioned that a full return to normal trade flows could take at least three months. They cited multiple constraints, including slow vessel movement, limited ship and insurance availability, loading bottlenecks, and production disruptions, The Economic Times reports.

At present, 16 India-flagged vessels remain stranded in the Persian Gulf, while eight liquefied petroleum gas (LPG) carriers have managed to cross the Strait of Hormuz in recent weeks. In total, around 800 ships are caught up in the region, highlighting the scale of the logistical backlog.

Despite the ceasefire, uncertainty continues to weigh on shipping operations. “Until a final deal is reached, Iran is unlikely to allow traffic to normalise,” an industry executive said. “Even if ships move out, sending them back won't be easy due to the risk of getting stranded again and difficulties in securing insurance.”

Complicating matters further, Iran has proposed imposing a levy on vessels transiting the Strait of Hormuz as part of its ceasefire discussions with the United States.

“We have had no discussion with Iran on this issue,” said Randhir Jaiswal, adding that India expects unimpeded navigation and the smooth functioning of global commerce through the strategic waterway.

Another official downplayed the significance of Washington’s stance, noting that freedom of navigation in international waters is protected under United Nations conventions.

Executives warned that the ceasefire is unlikely to provide immediate relief to tight physical supply conditions or significantly lower spot crude prices. Although Brent crude futures fell to $91 per barrel on Wednesday—down roughly $19 following the ceasefire—refiners have been paying between $130 and $140 per barrel in the spot market over the past month.

As India seeks to stabilize its energy supplies, the pace of recovery in regional oil trade will depend heavily on geopolitical developments and the durability of the ceasefire agreement.

By Vafa Guliyeva