2 more Indian LPG tankers prepare to cross Hormuz strait
What's the story
Two Indian-flagged liquefied petroleum gas (LPG) tankers are reportedly preparing to sail through the Strait of Hormuz. The move comes amid heightened tensions in West Asia and a recent blockade of the strait by Iran. The vessels, Pine Gas and Jag Vasant, are currently anchored near Sharjah in the United Arab Emirates. They have signaled their readiness for departure, according to ship-tracking data from MarineTraffic.
Diplomatic efforts
India calls for safe passage
India's Ministry of Foreign Affairs has called for the safe and unhindered movement of its fleet in the Gulf. Spokesperson Randhir Jaiswal said Prime Minister Narendra Modi is in talks with world leaders to ensure their safety. The Jag Vasant was chartered by Bharat Petroleum Corporation Limited (BPCL), while Indian Oil Corporation Limited (IOC) operates Pine Gas.
Market impact
Importance of the Strait of Hormuz
The Strait of Hormuz is a vital passage for global energy supplies, with around 20-25% of the world's crude oil passing through it. However, Iran has warned that it could target vessels leaving the Gulf. This has led to a spike in global oil and gas prices. Despite this, two Indian vessels, Shivalik and Nanda Devi, had recently crossed the strait safely after India's diplomatic outreach.
Shipping activity
Limited shipping activity through the strait
Limited shipping activity continues through the Strait of Hormuz, with Iran allowing some shipments on a case-by-case basis. A Pakistan-bound oil tanker was recently seen passing through the strait, indicating that not all commercial shipping has been halted. The planned movement of these two Indian tankers is being closely watched as it could indicate whether commercial shipping is ready to resume through this sensitive energy corridor.