Iran has declared a blockade of Strait of Hormuz. Consequently shipping companies have chosen to take necessary precautions and advised vessels to avoid the region to load/discharge cargo due to fears of attack by Iranians drones, missiles, and fast-attack craft. They have also instructed vessels stranded in the Persian Gulf to stay in the area and institute defensive measures. It is estimated that as many as 2000 ships are in the Persian Gulf waters and are awaiting a safe window of opportunity to sail out.

Iran is controlling-regulating the shipping traffic and instituted an “approval system”. It has announced that the Strait is safe for use by international shipping provided these vessels sail closer to Iranian waters to preclude any harm/attack. Meanwhile a new passage regime for vessels has been announced asking vessels to take route between the Iranian islands of Larak and Qeshm (a naval stronghold of the IRGC). These vessels are also required to undergo a security check and pay a “safe passage” fee of US$ 2 million.

The US has warned Iran to open the Strait within “48 hours” and threatened to attack its “power plants …if Iran doesn’t fully open”, and “hit and obliterate their various [similar facilities]!”; but has received a riposte of a similar threat of attacks on US linked “critical infrastructure, energy infrastructure, and oil facilities” throughout the region “ and these would be “destroyed in an irreversible manner.” Furthermore, Iran has warned all vessels belonging to or linked ‌to ‘Iran's enemies’ and sailing through the Strait, will be subjected to Iranian missile/drone attack.

The military standoff between Iran and Israel-United States, like other countries, has impacted Indian shipping. According to media reports, 22 Indian vessels are currently stranded in the Persian Gulf (6 vessels of the Shipping Corporation of India, four crude oil tankers, one LNG carrier and one bulk carrier). Further, “20 [vessels] have been classified as critical to India’s energy security, including three LNG carriers, 10 LPG carriers and seven crude oil tankers. Two Indian-flagged container vessels have also been prioritised for safe passage”. Also, the “total cargo onboard these vessels is estimated at 215,000 metric tonnes of LNG, 321,288 metric tonnes of LPG, and 1.67 million metric tonnes of crude oil”.

However the silver lining is that the Indian government has been able to source oil and gas supplies from diverse sources and these cargoes are being transported to Indian ports providing much relief to the highly disrupted energy supply chains.

In the above context, it will be useful to revive the Irano Hind shipping line, a joint venture between the Shipping Corporation of India (SCI) (49%) and the Islamic Republic of Iran Shipping Lines (IRISL) (51%). Established in 1975 as “symbol of friendship between Iran's Shah Reza Pahlavi and Indian Prime Minister Indira Gandhi”, the company engaged in transportation of crude oil, bulk, and general cargo vessels between the two countries. In 2013, after 38 years of operations, it was suspended due to inability of “charters” to hire vessels “under sanctions." . However attempts were made to revive the shipping joint venture in 2016 after “lifting of the sanctions imposed on Iran” were eased.  

Since the beginning of the ongoing war, on an average 5-6 vessels have begun to pass through the Straits of Hormuz every day and so far over 100 vessels have made safe transit including tankers bound for India. This is pursuant to 11 March 2026 tele-conversation between External Affairs Minister of India Dr. S Jaishankar and the Foreign Minister of Iran Mr Abbas Araghchi, and an Iranian foreign ministry statement has noted that discussions focused on the ““consequences” of the war on the security of shipping and vessel traffic through the Strait of Hormuz”.

There are at least three reasons to revive the Irano Hind shipping line. First, both India and India are in a crisis situation and it is in their respective national interests to buy-sell energy resources (India needs oil and gas and Iran needs markets). Second, for India, it is one of the ways to tide over the “safe passage” fee of US$ 2 million announced by Iran. Third, it is an opportunity to embed the Irano Hind shipping line into the 10-year contract for operating the Shahid Beheshti Port at Chabahar signed in 2024. The idea of reestablishing a joint venture shipping line was alluded to and hinted by Iran's Minister of Roads and Urban Development Mehrdad Bazrpash at the time of signing of the above contract.

Dr. Vijay Sakhuja is former Director National Maritime Foundation, New Delhi and is associated with Kalinga International Foundation, New Delhi.