At present, 16 Indian-flagged ships remain stuck in the Persian Gulf. (Amnesty International image)
Seeking to take advantage of the two-week ceasefire window, India is urging Iran to help expedite the movement of oil ships bound for India through the Strait of Hormuz. A shipping ministry official said the aim is to ensure these ships are unloaded quickly so they can be redeployed during the current two-week ceasefire to rebuild fuel stocks.Despite the temporary cessation of hostilities, industry executives warned that a full return to normal oil trading could take at least three months. They cited numerous constraints, including slow ship movements, limited ship availability and insurance, loading bottlenecks, and production disruptions.
Strait of Hormuz: Several ships heading to India are stuck
According to an ET report, currently, 16 Indian-flagged ships remain stuck in the Persian Gulf, while eight LPG tankers have managed to pass through the Strait of Hormuz in recent weeks.
In total, about 800 vessels are stuck in the area, and it is expected to take some time to clear this congestion.Although Indian refiners are keen to quickly increase supplies from the Gulf, executives have warned that the recovery process will be gradual.“Until a final agreement is reached, Iran is unlikely to allow traffic to return to normal,” an executive said. “Even if the ships leave, returning them will not be easy due to the risk of being stranded again and the difficulties of securing insurance.”
As part of discussions about a ceasefire with the United States, Iran proposed imposing a tax on ships passing through the Strait of Hormuz.“We have not had any discussions with Iran on this issue,” MEA spokesman Randhir Jaiswal said, adding that India expects global navigation and trade to continue unhindered through the Strait of Hormuz.Another official indicated that the American position is not a decisive factor, pointing out that the right to freedom of movement in international waters is guaranteed under United Nations conventions.The ceasefire is unlikely to lead to an immediate relief of limited physical supplies or significantly ease crude oil prices, executives said. Although Brent crude futures fell to $91 on Wednesday, down about $19 after the ceasefire, refiners still paid between $130 and $140 per barrel in the spot market over the past month.Meanwhile, the first shipment carrying Iranian crude oil will arrive in India soon. This is the first time India has bought crude oil from Iran after a period of more than 6 years, a possible move due to the 30-day exemption from US sanctions.
