India's Diplomatic Efforts Yield Results for Shipping Through Strait of Hormuz

India's diplomatic efforts with Iran have led to successful navigation for Indian vessels through the Strait of Hormuz, despite ongoing regional conflicts. External Affairs Minister S. Jaishankar highlighted the importance of these negotiations, confirming that two Indian-flagged ships recently crossed the strait. The situation remains fluid, with further discussions ongoing as more vessels await passage. This development underscores the significance of diplomatic engagement in resolving international shipping challenges, especially in a region critical for global oil supply. As tensions rise, the implications for oil prices and LPG supplies in India are becoming increasingly evident.

By Narendra Chaudhary Mar 16, 2026, 08:55 IST

India's Engagement with Iran on Shipping

India's direct negotiations with Iran have produced positive outcomes, allowing Indian vessels to navigate the Strait of Hormuz amidst ongoing tensions in West Asia, as stated by External Affairs Minister S. Jaishankar in a recent interview with a major news outlet. However, he clarified that there is no overarching agreement permitting all Indian ships to traverse the strait.

Jaishankar emphasized that each passage of Indian ships is being assessed on a case-by-case basis. He remarked, “Currently, I am in discussions with them [Iran], and these talks have been fruitful. This process is ongoing, and if it continues to yield positive results, I will certainly pursue it further.”

On Saturday, the Indian government confirmed that two Indian-flagged ships, Shivalik and Nanda Devi, successfully crossed the Strait of Hormuz while transporting liquefied petroleum gas.

Jaishankar noted that the successful passage of these vessels demonstrates the potential of diplomatic negotiations. He stated, “From India's viewpoint, it is preferable to engage in dialogue and coordination to find solutions rather than not doing so. If this approach encourages others to engage, it benefits the global community.”

His comments followed a call from U.S. President Donald Trump, who urged nations to send naval forces to secure the Strait of Hormuz.

In the interview, Jaishankar mentioned that discussions with Iran are ongoing, as several Indian ships are still awaiting passage through the strait. “These are still early days,” he remarked. “We have many more vessels in the area. While this is a positive development, conversations are continuing as we work through the details.”

He further added, “India and Iran share a relationship, and we view this conflict as deeply unfortunate.”

The conflict in West Asia escalated on February 28, with Iran effectively blocking the Strait of Hormuz for most international commercial shipping. This strait is crucial, with approximately 20% of the world's petroleum supply passing through it.

According to the International Energy Agency, the ongoing fighting has resulted in the most significant supply disruption in the history of the global oil market.

Since the onset of the conflict, global oil prices have surged, with the benchmark Brent crude oil price exceeding $100 per barrel, up from around $72.8 per barrel just before the conflict began.

This disruption has also impacted LPG supplies in India, which imports about 60% of its LPG needs, primarily from Gulf nations. The situation has led to temporary closures of several eateries and long lines at LPG distribution centers.