Iran exempts ships from India from transit restrictions in Strait of Hormuz

Why in the News

Indian commercial ships have gone from facing Iran’s transit restrictions in the Strait of Hormuz to passing freely, after Iran exempted vessels from four countries. The Deputy Chairman of the Iranian Parliament’s National Security and Foreign Policy Committee announced the exemption in an interview.

What has Iran announced?

1. Four exempted countries: Commercial ships from India, China, Iraq and Qatar are exempt from Iran’s transit restrictions in the Strait.
2. Free passage: Ships from these countries pass freely, and the official said American forces do not intercept them either.
3. The takeaway: Iran now decides which countries’ ships may cross the Strait freely, and India is among the few it has chosen.

Why were these countries chosen?

1. Mutual interests: Iran said the exemptions rest on specific considerations and mutual interests.
2. India and medicines: Passage for Indian ships is meant to allow imports of medicines.
3. China and political support: The exemption for Chinese vessels is meant to secure Beijing’s political support.

Why does it matter for India?

1. Contested waterway: Attacks continue on vessels trying to cross the Strait, so assured passage for Indian ships protects trade through it.
2. Exposure to the Gulf: Disruption in the Strait interrupts India’s trade and raises oil, gas and fertiliser prices. About nine million Indians also live in the Gulf.

Challenges

1. Revocable exemption: The exemption rests on mutual interests, so Iran can withdraw it if those interests change.
2. Attacks continue: Exemption from Iran’s restrictions does not by itself end attacks on vessels in the waterway.
3. Legal uncertainty: Iran has not ratified the United Nations Convention on the Law of the Sea (UNCLOS), the global treaty on navigation rights, and its 1993 law requires foreign warships to seek its authorisation to pass.

Way Forward

1. Written terms: The Ministry of External Affairs should seek the exemption’s terms in writing from Iran’s government.
2. Crew briefings: Indian shipping authorities should brief Indian ships and crews on the exemption before each transit.
3. Diversified supply: Energy importers should widen sources outside the Gulf to limit exposure to the Strait.

Conclusion

Iran has turned passage through the Strait into a privilege granted to chosen countries, and India is among them for now. Whether the exemption is formalised, and whether attacks on shipping ease, will decide its worth to Indian trade.

Back2Basics: Strait of Hormuz

1. Location: It connects the Persian Gulf to the Gulf of Oman and the Arabian Sea, with Iran on the northern shore and Oman and the United Arab Emirates (UAE) on the southern shore.
2. Width: It is about 33 km wide at its narrowest point, with shipping lanes only a few kilometres wide.
3. Oil route: Roughly a fifth of the world’s seaborne oil moves through it, and it is the only sea outlet for oil from the Gulf producers.
4. Bypass pipelines: Saudi Arabia’s pipeline to the Red Sea and the UAE’s pipeline to Fujairah can carry only a fraction of that volume.

Matching Previous Year Question

“[2026] Ships from which of the following countries have to cross the Strait of Hormuz to reach out to the Indian Ocean? 1. Bahrain 2. Syria 3. Qatar 4. Egypt (a) 1 and 2 (b) 1 and 3 (c) 2 and 3 (d) 3 and 4 ANSWER: B”