Modi Talks With Iran’s President as Tankers Stall in Hormuz

1pu}oomur}ovkq8p3)1(v6wy_media_dl_1.png Bloomberg reporting

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(Bloomberg) — Indian Prime Minister Narendra Modi said he discussed the “serious situation in the region” with Iranian President Masoud Pezeshkian, as New Delhi looks for ways to secure the safe passage of tankers through the Strait of Hormuz.

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In a post on X, Modi said he “expressed deep concern over the escalation of tensions and the loss of civilian lives as well as damage to civilian infrastructure,” adding the “safety and security of Indian nationals, along with the need for unhindered transit of goods and energy, remain India’s top priorities.”

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The message did not specifically mention maritime traffic through the Strait of Hormuz, which carries about a fifth of the world’s crude and is an essential corridor for India’s energy needs. The narrow waterway has effectively been closed since the US and Israel attacked Iran at the end of last month.

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India has been in talks with Iran to secure the passage of more than 20 tankers through the strait, according to people familiar with the matter. Negotiations are ongoing and being handled by the ministry of foreign affairs, said the people, who asked not to be named as the conversations are sensitive. 

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Laden with crude oil, liquefied petroleum gas and liquefied natural gas, the tankers have been stuck since US and Israeli attacks on Iran began, 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.

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Ten of the vessels are carrying LPG contracted by refiners including Indian Oil Corp., Hindustan Petroleum Corp., while five are transporting crude, one of the sources said. 

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India’s External Affairs Minister S. Jaishankar has spoken several times in recent days with his Iranian counterpart, Abbas Araghchi, including on Thursday. In one of the calls, the two discussed issues related to shipping safety and India’s energy security, according to a spokesperson for India’s foreign ministry.

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News reports on Thursday 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 the media.

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Last week, the US cleared the way for India to temporarily increase its purchases of Russian oil, reversing months of pressure on the world’s third-largest crude importer.

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The war came close to India’s doorstep last week when a US submarine torpedoed and sank an Iranian warship off Sri Lanka’s coast, unsettling New Delhi’s calibrated approach as Iran vowed to avenge the attack.

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The US attack took place just days after the Iranian ship had participated in a flagship Indian naval exercise at the invitation of New Delhi, alongside Indian and other foreign warships. It expanded the geography of the conflict to an area squarely within India’s strategic neighborhood and put Modi in a difficult position as his government seeks to avoid taking firm sides. 

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—With assistance from Mihir Mishra and Rajesh Roy.

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(Adds details on India foreign minister’s calls with Iranian counterpart.)

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