Iran to allow India-flagged tankers to transit through Strait of Hormuz

Iran will allow India-flagged oil tankers to pass through the Strait of Hormuz, a crucial route that handles about 40% of India’s crude oil imports, according to an Indian source speaking on March 12, although an Iranian source located outside the country denied that any formal agreement had been reached.

India’s Ministry of External Affairs and the Iranian embassy in New Delhi did not immediately respond to requests for comment, Caliber.Az reports via foreign media.

The Indian source asked not to be identified, saying they were not authorised to speak publicly, while the Iranian source stressed that the issue remains highly sensitive.

Tensions escalated after a Thai-flagged vessel heading to Kandla port in western India was attacked in the Strait on March 11, drawing sharp criticism from New Delhi.

“India deplores the fact that commercial shipping is being made a target of military attacks in the ongoing conflict in West Asia,” the foreign ministry said late on March 11.

“Precious lives, including those of Indian citizens, have already been lost in multiple such attacks ‌in ⁠an earlier phase of the conflict, and the intensity and lethality of the attacks appear to be increasing.”

Iran has reportedly targeted at least 16 vessels transiting the strategic waterway since Israel and the United States launched their military campaign against the country in late February. Tehran has also warned that oil prices could climb to $200 per barrel — nearly twice current levels — if tensions continue to escalate.

Earlier this week, India’s foreign minister Subrahmanyam Jaishankar held a phone conversation with his Iranian counterpart Seyed Abbas Araghchi, during which the security of maritime navigation through the Strait of Hormuz was discussed, among other matters, according to an Iranian readout of the call.

The growing risk of disruption along the route has forced India — the world’s third-largest consumer of crude oil — to seek alternative supply options, including increasing purchases from Russia.

By Jeyhun Aghazada