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Beyond

Iran to allow safe passage for Indian ships

Iran has assured India that its ships will be allowed safe passage through the Strait of Hormuz, a key maritime chokepoint for global energy supplies. The move comes amid rising tensions in West Asia that have disrupted shipping routes in the Gulf.

Iran’s Ambassador to India, Mohammad Fathali, said Indian vessels bound for the country would be granted “safe passage,” highlighting the longstanding friendship between the two nations. He emphasized that India is considered a friend and that operational details are expected to follow soon.

This assurance is significant for India, which relies heavily on energy imports from West Asia. A large portion of its crude oil and liquefied petroleum gas (LPG) passes through Hormuz, making uninterrupted maritime access a strategic priority.

In a practical demonstration of these arrangements, an Indian commercial ship carrying 40,000 metric tonnes of LPG recently exited the Strait of Hormuz with the protection of an Indian Navy escort. The operation reflects India’s proactive efforts to safeguard its energy shipments amid regional instability.

New Delhi has been in regular contact with Tehran to coordinate the safety of its vessels. Indian officials say that ensuring secure maritime routes is crucial to maintaining energy supply and trade continuity.

Analysts note that Iran’s assurances also signal an interest in maintaining stable bilateral relations with India, even as tensions with other countries in the region continue to escalate. For India, these diplomatic and security measures are part of broader efforts to mitigate risks to its energy imports and maritime trade.

With the first ship already escorted successfully, India’s energy supply chain is expected to remain largely uninterrupted. Further coordination between the two countries is likely to ensure smooth passage for more vessels in the coming weeks.

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Categories
Leaders

PM Modi urges peace, flags economic risks in Gulf

Prime Minister Narendra Modi held a telephone call with Benjamin Netanyahu on Monday, urging an “early cessation of hostilities” and emphasising that the safety of civilians must be a priority as tensions soar in West Asia following US–Israel strikes on Iran.

In his message on social media platform X, Modi said he had conveyed India’s concerns over the ongoing violence and called for de‑escalation to protect non‑combatants caught in the crossfire. He reiterated that India wants hostilities to end quickly and urged all sides to prioritise peace and civilian security.

The call comes amid growing concerns over trade and energy flows. India imports a significant portion of its crude oil and LPG from West Asia, and instability in the region, especially near strategic chokepoints like the Strait of Hormuz, could affect fuel costs, shipping schedules, and supply chains.

PM Modi also spoke with Sheikh Mohamed bin Zayed Al Nahyan, President of the United Arab Emirates, condemning recent attacks on the UAE and expressing India’s solidarity, while thanking UAE leadership for looking after the large Indian expatriate community.

Although direct trade with Iran has declined due to sanctions, India continues to export agricultural products, machinery, and pharmaceuticals, while importing dry fruits, chemicals, and glassware. Analysts warn that escalating conflict could disrupt these trade flows, affecting businesses and exporters dependent on Gulf markets.

India’s government is closely monitoring the economic fallout, including potential delays at ports, shipping disruptions, and volatility in energy prices. The PM’s outreach reflects India’s dual focus: advocating for peace to protect civilians and ensuring continuity of critical trade and energy interests.

PM Modi’s calls to regional leaders signal proactive diplomacy, combining humanitarian concerns with strategic economic foresight as businesses watch the Gulf situation for its impact on energy, logistics, and trade stability.

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Categories
Beyond

Brent crude jumps 13% as Iran moves on Hormuz

Global oil markets were rocked on Monday after crude prices surged more than 13% amid escalating conflict involving Iran, the United States and Israel, raising fears of a prolonged supply shock.

The sharp rally came after reports that Iran moved to restrict traffic through the Strait of Hormuz following coordinated US–Israel strikes on Iranian targets. The narrow waterway, located between Iran and Oman, is one of the world’s most critical energy corridors, handling nearly 20% of global crude oil and liquefied natural gas shipments each day.

Global benchmark Brent Crude surged as much as 13% to $82.37 per barrel, marking its highest level in over a year before easing slightly to trade near $79–$80. Meanwhile, West Texas Intermediate (WTI) climbed roughly 8% to around $72–$73 per barrel after volatile trading.

Shipping firms and maritime insurers have reportedly paused or delayed tanker movements through the Strait due to heightened security risks. Although Iranian authorities have not formally declared a complete closure, vessel tracking data shows significant slowdowns and rerouting activity. Analysts warn that even partial disruptions could tighten global supply chains.

Energy experts estimate that if flows through Hormuz were fully blocked, the global market could temporarily lose between 8 million and 10 million barrels per day, a volume difficult to replace quickly despite strategic reserves or alternative pipeline routes in Saudi Arabia and the UAE.

The price spike also reflects growing concern about retaliatory strikes and possible expansion of the conflict across the Gulf region. Traders are building in a geopolitical risk premium, pushing futures contracts higher across near-term delivery months.

Oil-importing nations face immediate pressure. Countries such as India, Japan and several European economies depend heavily on crude shipped through the Gulf. Higher prices could translate into rising fuel costs, inflationary pressures and widening trade deficits if the situation persists.

Meanwhile, producer alliance OPEC+ has signaled readiness to increase output modestly, but market analysts caution that incremental supply hikes may not offset a major disruption in Hormuz.

Financial markets reacted sharply, with global equities falling while safe-haven assets such as gold rose. Energy stocks, however, rallied on expectations of stronger earnings.

With geopolitical tensions intensifying and military exchanges continuing, oil markets remain highly volatile. Traders are closely monitoring developments around the Strait of Hormuz, as any confirmation of extended disruption could push crude prices toward the $90–$100 per barrel range in the near term.

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