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The Strait of Hormuz is slowly returning to business after more than 100 days of disruption, but the wider crisis has already left a deep mark on global trade. According to new data from Allianz, more than 1,200 ships carrying goods worth an estimated $125 billion have been stranded by the prolonged closure of the waterway.
For India, the safe passage of 30 linked vessels through Hormuz, with another 26 still waiting to transit, is welcome relief. But it is also a reminder that the country’s energy security remains closely tied to the stability of a narrow sea lane thousands of kilometres away.
A total of 30 vessels linked to India have successfully crossed the Strait of Hormuz, while another 26 are waiting to transit the route, The Times of India reported, citing sources in the Ministry of Ports, Shipping and Waterways. The development comes as maritime traffic gradually resumes through the strategic corridor after tensions in West Asia disrupted commercial shipping and raised fears of a broader energy shock.
According to the report, roughly half of the vessels that have already crossed were carrying liquefied petroleum gas (LPG) and liquefied natural gas (LNG), highlighting the route’s importance for India’s fuel supplies. Eight ships were transporting bulk cargo, while seven were crude oil tankers.
The successful passage of the vessels offers reassurance that India’s energy lifeline to the Gulf remains intact, even as shipping activity in the region remains far below normal levels.
Why Hormuz matters
The Strait of Hormuz connects the Persian Gulf to the Gulf of Oman and the Arabian Sea. At its narrowest point, the waterway is only about 33 kilometres wide, yet it carries a significant share of the world’s seaborne oil and gas exports.
Before the conflict, around 135 vessels transited the narrow passage every day, carrying roughly one-fifth of global oil and gas supplies. For India, the route is indispensable. The country imports more than 85 per cent of its crude oil requirements, with a large portion coming from Gulf producers such as Saudi Arabia, Iraq, the United Arab Emirates and Kuwait. Qatar, meanwhile, remains one of India’s largest suppliers of LNG.
Any disruption in Hormuz has the potential to affect everything from fuel prices and freight costs to inflation and economic growth. That is why developments in the strait are watched as closely in New Delhi as they are in global energy markets.
A crisis that rattled energy markets
Concerns over shipping through Hormuz intensified after military strikes on Iran in February and the prolonged closure that followed, effectively paralysing one of the world’s busiest shipping corridors for more than 100 days. Allianz described the shutdown as “unprecedented” and said it has fundamentally altered perceptions of risk across the maritime industry.
The closure sent shockwaves through energy markets, pushing crude oil prices above $100 a barrel and fuelling concerns over supply shortages in major importing economies across Asia and Europe.
The conflict has also taken a heavy toll on shipping. According to data from the International Maritime Organization (IMO), more than 40 vessels have been struck by missiles during the hostilities, while at least 14 seafarers have been killed. Tankers transporting crude oil and petroleum products have borne the brunt of the attacks.
Shipping companies responded by rerouting vessels, delaying sailings and reassessing security risks. Insurance premiums for ships operating in the region surged, adding to transportation costs and leaving dozens of vessels waiting for clearance to move through the corridor.
Signs of normalisation
The tentative peace agreement between the United States and Iran has improved confidence among shipping companies, prompting a gradual return of vessels to the strait.
According to Lloyd’s List Intelligence, the number of ships leaving the Gulf rose to 69 in the week ending June 21, up sharply from 24 in the previous week. The figure marks the highest level of weekly crossings since the conflict began.
The passage of 30 India-linked vessels suggests that shipping activity is gradually stabilising. The cargo profile of the vessels that have crossed is particularly significant. LPG and LNG shipments are critical for households, industries and power generation, while crude oil cargoes feed India’s vast refining sector. Bulk cargo vessels carry raw materials that support manufacturing and industrial activity.
The report said the remaining 26 vessels are expected to transit the route as maritime traffic steadily improves.
The reopening also comes as oil markets have largely unwound the geopolitical risk premium that had built up during the peak of the crisis. Benchmark crude prices have retreated from recent highs as traders become more confident that energy flows from the Gulf will continue.
Challenges remain
Despite the progress, shipping through Hormuz is not yet back to normal.
Industry experts say vessel movements remain carefully managed, with many ships still facing delays. Security concerns have not disappeared, and shipping companies continue to navigate higher operating costs and insurance premiums.
The broader disruption has also prompted shipping firms and insurers to rethink global trade routes and maritime risks. Several logistics and shipping companies are increasingly looking at alternative routes into the Gulf through ports on the Gulf of Oman and the Red Sea, while others are exploring expanded land-based transportation networks.
Executives say Iran’s demonstrated ability to disrupt traffic through Hormuz has reinforced the need to diversify supply chains and reduce dependence on a single maritime corridor.
Human cost of the crisis
Beyond the economic impact, the closure has created a growing humanitarian challenge for seafarers trapped aboard ships in the Gulf.
Allianz estimates that around 20,000 seafarers remain on vessels in the region, while the IMO said this week that approximately 11,000 crew members are seeking to leave.
To facilitate their evacuation, the UN maritime agency has established a dedicated corridor in coordination with Oman, enabling ships to exit the Gulf more safely.
The insurer’s report also highlighted broader labour shortages facing the maritime industry. Cases of seafarer abandonment — where shipowners fail to pay wages or provide adequate support — rose for a sixth consecutive year in 2025, reaching a record of more than 6,000 incidents worldwide.
The shipping industry will struggle to retain and recruit seafarers at a time of growing demand for skilled workers, driven by automation and green transitions, ultimately threatening the sector’s resilience and global supply chain stability, the report said.
The bigger picture
The Hormuz crisis has become one of the clearest demonstrations in recent years of how geopolitical tensions can disrupt global commerce.
Even as traffic gradually returns to the strait, the disruption has prompted governments, insurers and logistics firms to reassess the risks associated with major maritime chokepoints such as Hormuz, the Suez Canal and the Panama Canal.
For India, the reopening of Hormuz is not just about ships moving again. It is about ensuring that crude oil reaches refineries, gas reaches consumers, factories receive raw materials and the economy remains insulated from external shocks.
The country has sought to diversify its energy sources in recent years by increasing imports from regions such as Russia and the United States, while also expanding strategic petroleum reserves. However, the Gulf remains central to India’s energy basket.
