Because of rising tension in West Asia, Iran has taken an important decision. Instead of fully closing the Strait of Hormuz—one of the world’s most important sea routes—it has allowed ships from a few “friendly countries,” including India, to pass through. This route connects the Persian Gulf to the Gulf of Oman, and about 20% of the world’s crude oil moves through it, so any disruption can quickly push global oil and gas prices higher.
However, this decision is not permanent. It is a “selective access” system, which means only countries that have good relations with Iran are allowed to use the route, while others are restricted. The region is still considered high-risk, and ships may need special permission before passing through, which can lead to delays and higher shipping and insurance costs.
For India, this is a short-term relief because oil and LPG supplies are not completely stopped. But it is not a long-term solution, as the situation can change anytime if the conflict gets worse. Overall, while India benefits for now, the global oil market remains uncertain and unstable.
