India faces no immediate energy supply crisis as the Strait of Hormuz has reopened following a ceasefire agreement between the United States and Iran, with Defence Secretary Rajesh Kumar Singh confirming that Indian vessels are sailing freely and energy imports remain secure. This development has eased concerns over oil prices, shipping costs, and inflationary pressures.

The Defence Secretary Rajesh Kumar Singh stated that the Strait of Hormuz is open and that India does not face any energy supply crisis. He emphasised that Indian vessels are moving through the waterway without hindrance and that there is no requirement for special permissions or payments to Iran for passage.

He clarified that freedom of navigation applies under international conventions, and Indian shipping companies are coordinating with charterers to ensure safe transit.

Singh highlighted that several Indian LPG tankers have already crossed the Strait successfully, delivering vital supplies of cooking gas to Indian ports. He noted that two tankers, Pine Gas and Jag Vasant, carrying over 92,000 tons of LPG, reached New Mangalore and Kandla ports in March, ensuring uninterrupted domestic supply. He reassured that more vessels are preparing to transit, confirming that India’s energy needs are being met without disruption.

The reopening of the Strait of Hormuz follows a ceasefire agreement signed between US President Donald Trump and Iranian President Masoud Pezeshkian. This agreement ended months of conflict that had severely disrupted shipping and triggered sharp increases in global oil prices.

At the height of the crisis, crude oil prices surged to nearly $119 per barrel, but following the reopening, Brent crude fell to around $84 per barrel, easing inflationary pressures worldwide.

The Strait of Hormuz is one of the world’s most critical maritime chokepoints, handling nearly 20 per cent of global oil flows. Its closure earlier this year had stranded millions of barrels of crude and LNG, forcing countries like India to seek alternative supply routes and diversify imports. India had increased purchases from Russia and other suppliers, while also strengthening naval escorts and marine insurance coverage for vessels operating in high-risk waters.

Singh reiterated that India’s energy security remains intact, with no crisis in supply chains. He stressed that the government has taken proactive measures, including diversifying crude sources, expanding storage buffers, and ensuring naval protection for Indian-flagged ships.

He added that India continues to advocate for unimpeded navigation through the Strait of Hormuz and has raised this concern at international forums such as the G7 summit.

Industry analysts have noted that the reopening of the Strait provides significant relief for India, lowering freight costs and stabilising energy markets.

However, they caution that the crisis has exposed structural vulnerabilities in India’s energy ecosystem, underscoring the need for deeper oil buffers and diversified supply routes to reduce dependence on Gulf suppliers.

The Defence Secretary’s assurance comes at a time when global energy markets are adjusting to the new reality of resumed shipping through Hormuz. For India, one of the world’s largest crude importers, the reopening marks a crucial step towards restoring stability in energy supplies and maintaining economic resilience.

Agencies