Overview
Since the 28 February 2024 U.S.–Israel strike on Iran and Tehran’s retaliation, commercial traffic through the Strait of Hormuz has fallen by roughly 95 %. Around 600 vessels are now stranded, threatening the flow of oil, gas and bulk commodities that sustain both the world market and India’s energy mix.
Key Developments (Bullet Points)
- Ship traffic reduced by 95 % after the February 28 attacks; nine vessels have been hit in or near the strait.
- Lloyd’s List Intelligence estimates 250 bulk carriers, 200 oil tankers and 50 gas carriers are stranded.
- Insurance premiums for a week’s transit have risen 10‑15 times, making a single voyage as costly as a year’s normal insurance.
- India’s share of oil transiting the strait is about 40 %; Qatar’s LNG supplies, which meet half of India’s gas demand, have been halted.
- The U.S. has pledged naval escorts and is coordinating with India via the International Development Finance Corporation to secure maritime insurance.
Important Facts
The Malacca Strait, the Suez and Panama canals, and the Bosphorus‑Dardanelles are other critical chokepoints, but none can be shut down unilaterally. While Egypt once closed the Suez Canal, Panama has kept its canal open, and Turkey retains sovereign rights over the Bosphorus and Dardanelles.
Under innocent passage, merchant ships may use international waters, but security threats can deter operators, inflating insurance and prompting rerouting.
Alternative routes such as the Red Sea via the Bab‑el‑Mandeb are constrained by Houthi attacks, limiting Saudi oil exports to western ports like Yanbu.
Exam Relevance
Understanding the geopolitics of maritime chokepoints is essential for GS 2 (International Relations) and GS 3 (Energy Security). The crisis illustrates how regional conflicts can disrupt global supply chains, affect crude‑oil pricing, and compel policy responses such as naval escorts, insurance mechanisms, and diversification of energy imports.
India’s strategic response—building naval capacity in the Andaman‑Nicobar archipelago and seeking US‑backed insurance—highlights the interplay of defence, diplomacy and economic policy, a classic case study for GS 2 and GS 3.
Way Forward
- Strengthen naval presence in the Indian Ocean to safeguard merchant vessels and reduce insurance premiums.
- Accelerate diversification of oil and gas sources: increase imports of Russian crude (temporarily permitted), explore US LNG, and expand domestic refining of LPG.
- Engage multilaterally through the International Maritime Organization to uphold the principle of innocent passage and seek collective security arrangements.
- Develop contingency logistics, such as strategic petroleum reserves and alternative over‑land pipelines, to cushion short‑term supply shocks.
These measures aim to mitigate immediate price volatility and safeguard India’s long‑term energy security.