India to send oil tankers through Strait of Hormuz again
What's the story
India is gearing up to send vessels through the Strait of Hormuz for energy cargoes from Middle East suppliers. This will be the first time since the Iran conflict began that such shipments are planned. The state-owned Shipping Corporation of India (SCI) is ready to resume operations in the Persian Gulf after getting approval from Indian Navy and business from oil refiners.
Trade impact
Shipping through the strait has been largely disrupted
Shipping through the Strait of Hormuz, which accounts for nearly a fifth of global oil flows, has been largely disrupted since the Iran war started in late February. This disruption has caused major disruptions and price shocks for countries like India, the world's third-largest crude importer. The exact details regarding timing and volumes of these shipments remain confidential.
Security measures
Navy doubles number of warships in region
In light of the ongoing conflict, India's Navy has doubled its number of warships in the region and stepped up aerial surveillance. The warships are escorting Indian-flagged ships and vessels headed to India once they safely exit the strait. This is part of a broader strategy to ensure safe passage for these critical energy shipments through potentially hostile waters.
Insurance initiative
Indian government launches marine insurance scheme
To further safeguard its energy imports, the Indian government has launched a marine insurance scheme. The initiative aims to provide continuous cover for Indian ships and cargoes sailing through high-risk waters like the Strait of Hormuz.