Traffic through the Strait of Hormuz has come to a standstill after Iran seized two ships, which has increased uncertainty over the movement of oil and gas
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NEW DELHI — Traffic through the Strait of Hormuz has come to a standstill after Iran seized two ships, including one bound for Kandla port in Gujarat, which has increased uncertainty over the movement of oil and gas as 20 per cent of the world’s energy exports transit through the waterway.
As a result, oil prices firmed up on Thursday with the benchmark Brent crude trading at over $103 a barrel.
The bulk of India’s LPG imports and 50 per cent of crude imports are sourced from the Persian Gulf which have been impacted due to the closure of the Strait of Hormuz, even as the government is diversifying imports of crude and increasing domestic production of LPG to enhance energy supplies. Some consumers are also switching to alternative fuels such as natural gas, coal and electric cooktops.
Iran's chief negotiator in talks with the US, Mohammad Bagher Ghalibaf, said it is not possible for the Strait of Hormuz to be opened due to the blatant violations of the ceasefire by the US and Israel.
In a post on X on Wednesday, Ghalibaf, said the violations include the US naval blockade of Iranian ports and warmongering by Israel on all fronts.
Iran remains open to negotiations, said Iran President Masoud Pezeshkian, but he added, breach of commitments, blockade and threats are main obstacles to genuine negotiations
Meanwhile, Indian-flagged crude oil tanker Desh Garima safely arrived in Mumbai on Wednesday. It crossed the Strait of Hormuz earlier, carrying 31 Indian crew members and over 97,000 metric tonnes of crude oil amid high tensions in the region. The ship was escorted by the Indian Navy. The Government has also refuted social media reports that the captain of the Indian Sanmar Herald paid a toll to cross the Strait earlier.
While the Middle East crisis has led to an abnormal increase in crude prices, the Government of India has reduced excise duty on petrol and diesel by ₹10 per litre so that consumers do not have to pay a higher price at the pumps. Retail fuel outlets across the country are operating normally and there has been no increase in the prices of petrol
US President Donald Trump has announced an extension to the US-Iran ceasefire that was due to expire on Wednesday even as the American blockade of Iranian ports continues.
White House Press Secretary, Karoline Leavitt, clarified that the ceasefire extension is open-ended, and has no new deadline. She further stated that Trump is satisfied with the ongoing US naval blockade against Iran, and Tehran is seen to be in a very weak position. She also told journalists that President Trump will decide when the war would end based on the best interests of the United States.