India is in talks with Iran to secure the safe passage of more than 20 tankers through the Strait of Hormuz, according to people familiar with the matter.
Negotiations are still ongoing and are being handled by the ministry of foreign affairs, said the people, who asked not to be named as the conversations are sensitive. The narrow waterway, through which around a fifth of the world’s crude typically flows, has been effectively closed since the start of the war in the Persian Gulf.
Laden with crude oil, liquefied petroleum gas and liquefied natural gas, the tankers have been stuck since US and Israeli attacks on Iran began late last month, but their arrival should help ease supply tightness. India relies on the Middle East for nearly half of its crude, two-thirds of its LNG and almost all of its LPG imports.
India’s External Affairs Minister, S. Jaishankar, has spoken three times in recent days with his Iranian counterpart, Abbas Araghchi, Randhir Jaiswal, a spokesperson for India’s foreign ministry, said at his weekly media briefing on Thursday. During their most recent call, Jaishankar discussed “issues pertaining to the safety of shipping and India’s energy security,” Jaiswal added, without giving details.
Earlier on Thursday, news reports suggested Iran had permitted India-flagged vessels to pass through the Strait. Asked about an agreement, an Iranian official familiar with the matter denied a green light had been granted, asking not to be named as he is not authorized to speak to media.
Ten of the vessels are carrying LPG contracted by refiners such as Indian Oil Corp. Hindustan Petroleum Corp., while five are transporting crude, one of the sources said.
Traffic through Hormuz has dropped dramatically, but ships do occasionally manage to transit, including tankers bound for India, according to Sumit Ritolia, lead analyst at Kpler. Ship-tracking data show cargoes moving through the Strait on March 6 and March 9 that have since arrived, or are scheduled to arrive, at Indian ports.
However, AIS signals for several vessels reappeared only after they exited the Gulf, suggesting transponders were switched off while passing through the strait, he said. Dark transit, which involves temporarily disabling tracking systems, is not unusual in high-risk areas.
Disclaimer: This report is auto generated from the Bloomberg news service. ThePrint holds no responsibility for its content.
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