Iran is set to allow India-flagged tankers to pass through the Strait of Hormuz, an Indian source told Reuters on Thursday amid conflicting reports about the situation at the world’s most vital oil trade chokepoint.
India, the world’s third-largest crude importer, gets about 40% of its oil imports from the Middle East and the Strait of Hormuz.
Yet, an Iranian source based outside Iran told Reuters there was no such agreement for safe passage between Iran and India.
The Economic Times, an Indian outlet, reported on Thursday that Iran had allowed two India-flagged tankers to transit the Strait of Hormuz after the Indian and Iranian foreign ministers held a telephone conversation to discuss keeping the route open for Indian vessels.
Officially, India’s External Affairs Ministry on Wednesday expressed concern that commercial shipping is being targeted in the war after a Thai ship bound for Kandla in India was attacked at the Strait of Hormuz.
“India deplores the fact that commercial shipping is being made a target of military attacks in the ongoing conflict in West Asia,” the ministry said.
“India reiterates that targeting commercial shipping and endangering innocent civilian crew members, or otherwise impeding freedom of navigation and commerce, should be avoided.”
On Wednesday, Iran warned that oil prices could hit $200 per barrel soon.
As of the end of last week, dozens of Indian and South Korean oil tankers and more than 1,100 crew were stranded in and around the Persian Gulf as the Strait of Hormuz remains de facto closed to tanker traffic.
As many as 37 India-flagged ships with more than 1,100 crew in total were stuck around the Strait of Hormuz.
India has received a special one-month U.S. waiver to buy Russian crude loaded on any vessel, including blocked vessels, on or before March 5, 2026, until April 4, 2026. However, competition from China for the same barrels could limit the extent of India’s benefit, analysts say.
By Tsvetana Paraskova for Oilprice.com
