| Question (2022, GS1 – 15 Marks): “Mention the significance of straits and isthmus in international trade. Linkage: This highlights how narrow bottlenecks like the Straits of Hormuz, Malacca, and Singapore handle vital portions of global trade and energy flows, making the legal rights of transit passage across these straits crucial to global supply chains. [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 Select the answer using the code given below: [A] 1 and 2 [B] 1 and 3 [C] 2 and 3 [D] 3 and 4 |
Mentor Comment
Siege warfare continues in the Strait of Hormuz and the Strait has not reopened. The Straits of Malacca and Singapore settled a structurally similar problem in the 1970s, when the territorial sea claims of the littoral States met in the middle and left no high seas corridor through them. That settlement produced the transit passage regime in the United Nations Convention on the Law of the Sea (UNCLOS) and, in 2007, a Cooperative Mechanism funding navigation safety without any toll on shipping. Iran and Oman have apparently agreed on a framework for reopening Hormuz, and the United States has not accepted the arrangement. The tension is that the technical parallels between the two waterways are close while the conditions that made the Malacca settlement possible, a convention still being negotiated and great powers willing to trade, no longer exist.
What is transit passage and how does it differ from innocent passage?
- Innocent passage: It is the right of a foreign vessel to pass through another State’s territorial sea. The coastal State may suspend it for security reasons, and it excludes submerged submarines.
- Transit passage: It is a right of passage through straits used for international navigation that connect areas of high seas or exclusive economic zones, in a “continuous and expeditious” manner with no stopping or loitering.
- Why the difference matters: Transit passage applies to warships as well, and cannot be suspended by the coastal State, so it goes beyond mere innocent passage.
- Where it comes from: The concept was introduced by the United Kingdom as UNCLOS entered its final phase of formulation in the 1970s, specifically to solve the problem of straits narrower than two territorial seas.
How did the Malacca and Singapore Straits stop being treated as international waters?
- The geography: The Strait of Malacca runs some 800 kilometres between the Malay Peninsula and the Indonesian island of Sumatra, connecting the Andaman Sea to the Strait of Singapore. The Strait of Singapore, some 105 km long, connects onward to the South China Sea.
- Indonesia’s archipelagic claim: A newly decolonised Indonesia feared for the security of its individual islands and in 1957 declared that all waters “surrounding, between and connecting the islands” were Indonesian waters.
- The 12 nautical mile claims: Indonesia insisted its territorial waters extend 12 nautical miles from the outermost islands. Malaysia revised the stance it had taken at the 1958 UNCLOS conference and also announced a 12 nautical mile territorial sea, despite its 1963 armed conflict with Indonesia over Borneo.
- The closure of the corridor: At their narrowest points the Straits are well under 24 nautical miles wide, so once both States claimed 12 nautical mile territorial seas the zones met in the middle, leaving no strip of high seas or exclusive economic zone (EEZ) between them.
- The consequence under the law of the time: The Straits became simply territorial seas, where foreign vessels enjoyed only innocent passage, a right Indonesia or Malaysia could suspend.
- The 1971 joint statement: Malaysia, Indonesia and Singapore jointly challenged the older international character of the Straits and proposed a coordinating body of representatives of the three States to administer them.
- Singapore’s reservation: As an island nation dependent on trade and shipping, Singapore did not agree to declaring the Straits “not international”, but made common cause with Malaysia on the safety of navigation.
How did the great powers respond to the littoral claim?
- Japan, cooperation over internationalisation: Japan was a major player through the Japan funded Malacca Strait Council, and offered cooperation with the three States rather than seeking an internationalised regime.
- The United States and the Soviet Union, aligned: Otherwise rivals, they were allies on this one issue, seeking to keep the Straits open for ships to retain the right of “continued, politically uncluttered transit”.
- The United Kingdom, a legal solution: It introduced the transit passage concept, which preserved great power naval mobility while conceding the littoral States’ territorial claim.
- Indonesia, a traded concession: It agreed to the transit passage formulation with reservations, trading its acceptance for greater security for its archipelago, which UNCLOS eventually addressed separately.
- Malaysia, technical conditions: Its concerns centred on environmental safety, insurance requirements and permissible vessel draught rather than on the passage right itself.
What did the 2007 Cooperative Mechanism actually settle?
- What it built on: In 2007 the three States, working with the international community, arrived at a Cooperative Mechanism built on a traffic separation scheme similar to what Iran and Oman had agreed for the Strait of Hormuz in the 1960s.
- The core bargain: User States and industry contribute to a fund for aids to navigation, hydrographic surveys and safety projects, administered jointly with the littoral States.
- Who funds it: The Aids to Navigation Fund is supported by voluntary contributions from non profit organisations such as The Nippon Foundation and the International Foundation for Aids to Navigation, along with industry stakeholders and States with an interest in safe use of the Straits.
- How it is governed: The fund is administered on a rotation basis by a committee of representatives of the three littoral States and the contributors.
- The line that makes it work: These contributions do not amount to tolls, and Indonesia, Malaysia and Singapore impose no fees, tolls or any other payment on ships exercising the right of transit passage.
Where does the Hormuz geography match the Malacca case?
- The intersecting territorial seas: The territorial waters of Iran and Oman intersect, making sections of the Strait of Hormuz part of their territorial waters, which is the same structural condition that closed the high seas corridor through Malacca.
- The precedent already borrowed: The traffic separation scheme that the 2007 Cooperative Mechanism built on was itself modelled on the Iran and Oman arrangement of the 1960s, so the two waterways have shared technical machinery before.
- A regional sponsor exists: Qatar is among the Persian Gulf nations that have supported the Iran and Oman talks, and it had also mooted the Malacca and Singapore Straits as a model.
- Cooperation has precedent in the Gulf: Persian Gulf nations have a history of both conflict and cooperation, and the United Arab Emirates was among Iran’s leading trading partners.
Why can the Malacca settlement not simply be transplanted?
- The convention moment has passed: The Malacca issue was resolved as UNCLOS itself was being put into effect, when trade offs were part of negotiating a convention intended to govern the world’s oceans. No comparable bargaining table exists now.
- One party is outside the convention: Iran has not ratified UNCLOS, so the transit passage compromise that bound the Malacca littorals does not bind it in the same way.
- A contrary domestic law is in force: In 1993 Iran passed a law requiring foreign warships to seek its authorisation to pass through the Strait, and this continues to be a sore point.
- The core issue is different: In the Malacca and Singapore Straits the key concerns were safety of navigation and the environment. In the Strait of Hormuz the key issue is Iran’s security, which no navigation fund can answer.
- The decisive user State may refuse: Even if the Gulf nations arrive at a framework they all agree on, the United States has shown it may not accept it, and it has not accepted the Iran and Oman framework already reached.
Challenges to building a cooperative mechanism for the Strait of Hormuz
- A funding model cannot address a security demand: The Malacca fund bought navigation safety, which was what the littorals wanted. Hormuz is closed over sanctions and military pressure, which money does not purchase. Eg. The Iran and Oman framework has been agreed without the Strait reopening.
The Fix: Pair any navigation mechanism with a separate sanctions and de escalation track, so the technical body is not asked to carry a political settlement it cannot deliver. - Voluntary contributions leave the mechanism hostage to the largest funder: A body financed by user States and industry depends on the continued participation of the states with the biggest stake. Eg. The Aids to Navigation Fund for the Malacca and Singapore Straits rests on voluntary contributions from foundations and industry.
The Fix: Fix assessed minimum contributions by volume of transiting tonnage, so the mechanism’s budget is not renegotiated every cycle. - India’s exposure is concentrated and cannot be hedged quickly: A large share of India’s crude and liquefied petroleum gas moves through this one waterway, so a closure transmits directly into domestic fuel prices. Eg. Brent crude crossed $120 per barrel during the Hormuz blockade.
The Fix: Accelerate use of the pipelines that bypass the Gulf, including the East West pipeline across Saudi Arabia and the Habshan to Fujairah line, and raise strategic petroleum reserve cover. - War risk insurance can close a strait without a blockade: Premiums rise faster than any legal regime can respond, and a shipowner withdraws tonnage on commercial grounds alone. Eg. Marine war risk premiums for vessels entering the Gulf rose by over 1,000 percent during the crisis.
The Fix: Create a sovereign backed reinsurance facility for Indian flagged and Indian chartered tonnage on the route, so freight does not stop before the diplomacy concludes. - Seafarer safety has no institutional owner in a closure: Crews remain aboard commercial vessels inside a contested waterway with no flag State machinery to extract them. Eg. Nearly 700 Indian sailors were stuck on commercial ships near Hormuz during the 2026 crisis.
The Fix: Negotiate a standing humanitarian corridor protocol with the littoral States covering crew relief and medical evacuation, activated automatically on a declared closure.
Conclusion
The two waterways share a legal problem and not a political one. Malacca was settled because the littoral claim could be traded inside a larger convention that every major power wanted concluded, and Hormuz offers no equivalent prize to trade against Iran’s security demand. The two things that cannot both hold are a littoral framework built by the Gulf States themselves and a user State that reserves the right to reject it. What to watch is whether the Iran and Oman framework attracts the acceptance of the principal user States, since the Strait’s reopening now turns on that acceptance rather than on the framework’s contents.
Maritime Choke Points and India
- What a choke point is: It is a narrow section of a shipping route where traffic must converge, so a disruption at that point affects a disproportionate share of global trade and cannot be routed around cheaply.
- India’s exposure: India imports close to 85 percent of its crude requirement, and a large majority of its liquefied petroleum gas supply moves through the Strait of Hormuz, making the waterway a direct input into domestic energy prices.
- The eastern approach: The Strait of Malacca is the corresponding eastern choke point, through which a reported 60 percent of India’s trade passes, and the Andaman and Nicobar Islands sit at its western approach.
- The other two that matter: The Gulf of Aden with the Bab el Mandeb, and the Suez Canal, complete the set on India’s westward routes to Europe, Africa and the Americas.
Government Initiatives on Maritime Security and Choke Point Resilience
- Information Fusion Centre, Indian Ocean Region (IFC-IOR): Established at Gurugram to build maritime domain awareness across the region, it hosts international liaison officers and links with partner centres including the European Union’s Maritime Security Centre for the Horn of Africa.
- SAGAR and MAHASAGAR: Security and Growth for All in the Region is India’s maritime cooperation doctrine for the Indian Ocean littoral, covering capacity building, hydrography, surveillance and disaster response for smaller island and coastal States.
- Chabahar Port: India Ports Global Limited took over operations of the Shahid Beheshti terminal under a 10 year agreement signed in 2024, giving India a sea and land route to Afghanistan and Central Asia that avoids the Pakistan corridor.
- India Middle East Europe Economic Corridor (IMEC): A rail and shipping corridor linking India to Europe through the Gulf and Israel, intended as a land and sea bridge that reduces dependence on the Suez route.
- Strategic Petroleum Reserves: Underground crude storage at Visakhapatnam, Mangaluru and Padur is held by Indian Strategic Petroleum Reserves Limited, with further capacity approved, to cover supply interruption at the import choke points.
Back2Basics
- United Nations Convention on the Law of the Sea (UNCLOS): Adopted in 1982 and in force from 1994, it is the framework treaty setting out the rights and duties of States in the use of the oceans.
- The maritime zones it fixes: A 12 nautical mile territorial sea, a 24 nautical mile contiguous zone, and a 200 nautical mile exclusive economic zone measured from the baseline.
- Its dispute machinery: Disputes may go to the International Tribunal for the Law of the Sea at Hamburg, the International Court of Justice, or arbitration under the Convention’s annexes.
- Membership relevant here: India ratified UNCLOS in 1995. Iran has signed but not ratified it, which is why its 1993 law on warship authorisation sits outside the Convention’s transit passage regime.







