Iran’s decision on Friday to reopen the Strait of Hormuz represents a welcome development for India, which depends on the waterway for nearly 50% of its oil imports, especially after widespread disruptions in energy supplies due to conflict in West Asia. Follow the latest news about the war between Iran and the United States
The decision, which Iranian Foreign Minister Seyyed Abbas Araqchi will have in effect for the remainder of the Iran-US ceasefire, will allow about 15 Indian-flagged commercial vessels currently located west of the strait to cross the waterway and return to the country.
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There was no immediate response from Indian officials to the Iranian move, which is believed to be part of a package being prepared between Tehran and Washington as part of efforts to end the 50-day conflict that began on February 28. During recent interactions with leaders of the United States, Iran, and West Asian countries, the Indian leadership stressed the importance of reopening the strait to ensure unhindered and safe trade and transit of commercial shipping.
The Iranian decision also led to a sharp decline in crude oil prices, a welcome development for India, which had watched with concern as the price of Brent crude rose from about $70 a barrel before the conflict to $119 in late March. After Araqchi’s announcement, the price of Brent crude fell below $90 per barrel.
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US President Donald Trump said on social media that the Strait of Hormuz is fully open for passage, although the US blockade of Iranian ports will remain in place until a final agreement is reached with Iran. However, Iranian officials said that passing ships would have to pay a fee. India has insisted in recent days that there were no discussions with the Iranian side regarding payment of duties.
While India has deployed warships in the Gulf of Oman to escort commercial ships transiting the strait, it has given no indication of allocating assets to any potential multilateral force to secure the region.
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In recent days, the Indian government has focused on supporting energy supplies from West Asia, sending External Affairs Minister S Jaishankar and Oil Minister Hardeep Puri to the United Arab Emirates and Qatar, respectively, to ensure uninterrupted oil and gas supplies. These efforts are expected to continue even after the reopening of the Strait of Hormuz, especially to assess the effects of damage to energy infrastructure in the region and ensure that the application of force majeure clauses by energy suppliers does not impact India, people familiar with the matter said.
