What Happened
- Two Indian-flagged LPG tankers — Shivalik and Nanda Devi, owned by the Shipping Corporation of India (SCI) — crossed the Strait of Hormuz on March 14, 2026 after Iran granted special exemption for their passage.
- The vessels carried a combined 92,700 tonnes of LPG from Gulf nations and are bound for Mundra and Kandla ports in Gujarat.
- Iran had largely halted traffic through the Strait of Hormuz following US-Israel airstrikes on Iran in late February 2026, which also resulted in the death of Iran's Supreme Leader Ali Khamenei.
- India secured the exemption through diplomatic engagement: Prime Minister Modi spoke directly with Iranian President Masoud Pezeshkian, and Iran's Foreign Minister Abbas Araghchi confirmed the exception was made because "India is our friend."
- The Indian Navy is reported to have escorted the vessels through the strait, according to satellite imagery and news reports.
Static Topic Bridges
The Strait of Hormuz — A Global Energy Chokepoint
The Strait of Hormuz is the world's most critical maritime energy chokepoint, located between Oman and Iran with a navigable channel only about 3.2 km (2 miles) wide in each direction. In 2024, approximately 20 million barrels per day (b/d) of oil and petroleum products transited the strait, representing roughly 20% of global petroleum liquids consumption and more than one-quarter of total global seaborne oil trade. Additionally, approximately one-fifth of global liquefied natural gas (LNG) trade also passed through the strait in 2024.
- Saudi Arabia accounted for 38% of total Hormuz crude flows (5.5 million b/d) in 2024.
- China and India together received 44% of crude oil exports leaving the Strait.
- There are very few alternative pipeline routes or shipping lanes that could absorb Hormuz volumes if the strait were closed.
- The Suez Canal, Bab-el-Mandeb (Red Sea), and Strait of Malacca are the other critical global maritime chokepoints.
Connection to this news: India depends heavily on Gulf energy imports, particularly LPG for domestic cooking gas. A sustained Hormuz closure would trigger severe shortages and price inflation in India's domestic energy market.
India-Iran Relations and the Chabahar Port Framework
India and Iran formalised diplomatic ties in 1950, and the bilateral relationship spans energy, connectivity, and civilisational links. The 2016 trilateral agreement between India, Iran, and Afghanistan established the Chabahar Port as a key corridor bypassing Pakistan to reach Afghanistan and Central Asia. India Ports Global (a joint venture of Jawaharlal Nehru Port Trust and Kandla Port Trust) signed a 10-year operating agreement with Iran for the Shahid Beheshti terminal at Chabahar in May 2024. India has historically imported Iranian crude oil and LPG, though volumes fluctuated significantly under US sanctions.
- India had paused Iranian crude imports following the reimposition of US sanctions in 2018–19, then resumed purchases cautiously after 2022.
- The International North-South Transport Corridor (INSTC) — linking India via Iran to Russia and Central Asia — further deepens India's strategic stake in keeping Iran accessible.
- India does not formally align with US or Western positions on Iran, consistently calling for dialogue and restraint.
Connection to this news: India's ability to secure a diplomatic exemption from Iran reflects the accumulated goodwill of years of strategic engagement — including Chabahar and INSTC investment — even when under external pressure to distance itself from Tehran.
Energy Security and India's Import Dependence
India is the world's third-largest energy consumer and imports approximately 85% of its crude oil requirements. LPG demand has grown sharply since the PMUY (Pradhan Mantri Ujjwala Yojana) scheme expanded LPG connections to over 100 million households, particularly in rural areas. Gulf countries — Saudi Arabia, UAE, Qatar, Kuwait — are India's primary suppliers of both crude and LPG, making stable passage through the Persian Gulf and Strait of Hormuz non-negotiable for India's energy security.
- India's LPG imports are largely from Qatar and Saudi Arabia and are priced under long-term contracts.
- Disruption of Hormuz access forces India to either seek spot market alternatives (at higher cost) or face domestic supply shortages.
- The strategic petroleum reserve (SPR) programme — India operates reserves at Visakhapatnam, Mangaluru, and Padur — provides a buffer of approximately 9.5 million tonnes, roughly 9–13 days of consumption.
Connection to this news: The urgency of diplomatic intervention to secure LPG passage underscores India's limited buffer against Hormuz disruptions and reinforces the case for diversifying energy suppliers and expanding SPR capacity.
Key Facts & Data
- Vessels: Shivalik and Nanda Devi (Shipping Corporation of India), combined cargo: 92,700 tonnes of LPG.
- Destination ports: Mundra and Kandla, Gujarat; arrival expected March 16–17, 2026.
- 20 million barrels per day passed through the Strait of Hormuz in 2024 (~20% of global oil consumption).
- India imports ~85% of its crude oil requirements.
- Chabahar Port 10-year operating agreement signed: May 2024 (India Ports Global).
- Iran's exemption: granted following a Modi–Pezeshkian phone call on March 13, 2026.
- PMUY (Pradhan Mantri Ujjwala Yojana) launched 2016 — expanded LPG access to over 100 million rural households.