India secures oil lifeline through Hormuz after Jaishankar’s talks with Iran

India has secured safe passage for its oil shipments through the vital maritime corridor of the Strait of Hormuz after high-level diplomatic engagement with S Jaishankar’s Iranian counterpart Abbas Araghchi, sources said on March 12.

The development comes amid escalating tensions in West Asia that have raised fears of disruptions to global energy supplies. According to sources, New Delhi moved swiftly to safeguard its energy imports after Iran signaled restrictions on shipping through the strategic waterway.

Officials said the discussions between Jaishankar and Araghchi focused on ensuring uninterrupted transit for Indian oil tankers through the strait, one of the world’s most critical maritime chokepoints through which a large share of global crude oil and natural gas shipments pass.

With conflict in the region intensifying, India’s diplomatic outreach aimed to keep the sea route open for Indian vessels carrying crude oil and liquefied petroleum gas (LPG), both crucial for the country’s energy needs.

Sources indicated that while Iranian authorities have allowed Indian tankers to continue using the route, vessels linked to the United States, Europe and Israel are currently facing restrictions in the waterway.

Jaishankar also held consultations with key global counterparts, including Sergey Lavrov of Russia and Jean‑Noël Barrot of France, to discuss the evolving crisis and efforts to maintain stability in the region’s critical shipping lanes.

Earlier this month, Iran’s powerful Islamic Revolutionary Guard Corps announced that the Strait of Hormuz had been effectively closed to shipping and warned that vessels attempting to pass through the strategic corridor could be targeted, according to Iranian state media.

The warning marked a dramatic escalation in the confrontation involving Iran, Israel and the United States, following reports that Iran’s Supreme Leader Ali Khamenei was killed in a joint US-Israeli strike.

Energy shock hits India

The turbulence around the Strait of Hormuz has already begun to ripple through India’s domestic energy market, triggering shortages of commercial LPG and severely affecting the hospitality sector.

Restaurants in cities such as Bengaluru, Chennai and Mumbai have warned of possible closures as supplies of commercial LPG cylinders remain disrupted.

Industry groups say deliveries have been halted since Sunday, leaving many establishments struggling to continue operations. Nearly 20% of hotels and restaurants in Mumbai have reportedly shut down, while the Chennai Hotels Association has urged Narendra Modi to ensure urgent LPG supplies.

The supply crunch has coincided with a rise in LPG prices. On March 7, the price of a 14.2-kg household cylinder was increased by ₹60 across India, while commercial LPG cylinders saw a hike of around ₹115.

Shortages have also fuelled black-marketing in several areas, with cylinders reportedly being sold for as much as ₹2,000 to ₹2,500.

Hours before the diplomatic breakthrough on Hormuz, Prime Minister Modi directed Union ministers to closely monitor attempts to spread panic about LPG shortages and counter what the government described as misleading narratives.

According to sources, the issue was raised during a Cabinet meeting, where Modi emphasized that the disruptions stem from global developments linked to the conflict in West Asia and assured that the government was prepared to manage any supply challenges.