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India moves diplomatically to secure Hormuz route as LPG shipments and merchant vessels face disruption

India has initiated diplomatic engagement with Iran to ensure safe passage for LPG shipments and Indian merchant vessels stranded near the Strait of Hormuz amid escalating regional tensions. The move reflects growing concerns over energy security and shipping safety as the conflict in West Asia threatens one of the world’s most critical energy corridors.

By Finblage Editorial Desk

10:51 am

13 March 2026

India has stepped up diplomatic engagement with Iran to secure the safe movement of energy cargo and commercial vessels through the strategically vital Strait of Hormuz as tensions involving Iran, Israel and the United States continue to disrupt maritime traffic. The discussions come at a time when several LPG tankers and Indian merchant vessels are waiting near the strait, raising concerns about supply chains, crew safety and energy security for one of the world’s largest fuel importers.


According to officials familiar with the matter, India is currently coordinating with Iranian authorities to facilitate the movement of eight liquefied petroleum gas tankers positioned near the Strait of Hormuz. The vessels are awaiting clearance to transit the waterway, which has seen increasing military activity in recent days. Government officials are monitoring the situation closely and remain hopeful that the shipments will soon be able to proceed once safe passage is ensured. The development was reported by international media outlets covering the unfolding maritime disruption in the region.


The diplomatic outreach is part of a broader effort by New Delhi to safeguard commercial shipping and protect the supply of key energy commodities entering the country. The Strait of Hormuz, located between Iran and Oman, is one of the most critical maritime choke points globally, accounting for roughly one-fifth of global oil and gas shipments. Any sustained disruption in this corridor has historically triggered volatility in global energy markets and heightened geopolitical risks.


For India, the stakes are particularly high because the country remains heavily dependent on LPG imports to meet domestic consumption needs. Government estimates suggest that around 60–67 percent of India’s LPG demand is met through imports, much of which originates from Gulf producers such as Saudi Arabia and Qatar. These shipments typically pass through the Strait of Hormuz before reaching Indian ports. A prolonged interruption in traffic through the strait could therefore create logistical challenges for fuel distributors and potentially tighten supply availability in the domestic market.


Officials indicated that India’s Crisis Management Group is working on contingency planning to ensure that cooking gas supplies remain stable despite the geopolitical disruption. The group is coordinating with multiple ministries to monitor inventory levels, shipping schedules and alternative logistical arrangements should tensions escalate further.


In parallel with energy supply concerns, India is also engaged in negotiations to ensure the safe return of Indian merchant vessels stranded around the region. According to officials from the shipping ministry, nearly 28 Indian-flagged vessels are currently located in waters surrounding the Strait of Hormuz and awaiting permission to move through the corridor. Authorities are tracking 24 vessels positioned west of the strait carrying 677 Indian crew members, while four additional ships with 101 Indian seafarers are located to the east.


Officials also confirmed that 78 Indian crew members are onboard foreign-flagged vessels that have been involved in maritime incidents during the recent escalation. The government has stated that it is closely monitoring all affected vessels and is maintaining communication channels with shipping companies and regional authorities to ensure the safety of Indian nationals.


The current disruption follows a series of attacks on tankers and cargo ships in the Persian Gulf, incidents that have heightened concerns over maritime safety in one of the world’s busiest energy corridors. According to reports referenced in global shipping updates, multiple vessels have been targeted in recent weeks, resulting in casualties among seafarers, including Indian crew members. India has formally condemned attacks on commercial vessels and emphasised the importance of protecting freedom of navigation under international maritime norms.


Diplomatic engagement between New Delhi and Tehran has intensified as the situation has deteriorated. India’s External Affairs Minister S Jaishankar has reportedly held multiple discussions with Iranian Foreign Minister Abbas Araghchi in recent days. Maritime security and energy supply continuity have been key themes in these conversations. The Ministry of External Affairs has acknowledged the discussions but has refrained from revealing detailed operational steps due to the sensitivity of the situation.


The unfolding situation also carries broader implications for global energy markets. Any sustained disruption in the Strait of Hormuz historically triggers upward pressure on crude oil and gas prices, as the corridor remains the primary export route for several Gulf producers. Rising energy prices could feed into inflationary pressures in importing economies, including India, which already faces sensitivity to crude price movements due to its large energy import bill.


From a market perspective, the developments are being closely watched by investors tracking the energy and logistics sectors. Elevated geopolitical risk in the Middle East often leads to volatility in oil benchmarks and shipping insurance costs. Indian refiners, LPG distributors and shipping operators could face operational uncertainties if the disruption continues for an extended period.

Sources & Disclaimer

This article is compiled from publicly available information, including company disclosures, stock exchange filings, regulatory announcements, and reports from global and domestic financial publications. The content has been editorially reviewed and enhanced by the Finblage Editorial Desk for clarity and investor awareness purposes only.

All information provided on Finblage is strictly for educational and informational use and should not be considered as financial, investment, legal, or professional advice. Readers are advised to conduct their own independent research and consult a certified financial advisor before making any investment decisions. Finblage shall not be held responsible for any losses arising from the use of information published on this website.

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