Indian LNG carrier exits Strait of Hormuz after 3 months as US-Iran peace deal eases tensions
An Indian liquefied natural gas (LNG) carrier, Disha, safely transited through the Strait of Hormuz on Monday, making it the first Indian-flagged LNG-carrying vessel to
An Indian liquefied natural gas (LNG) carrier, Disha, safely transited through the Strait of Hormuz on Monday, making it the first Indian-flagged LNG-carrying vessel to exit the war zone in over three months. The development comes roughly a day after US President Donald Trump announced that a peace deal with Iran is "now complete", with mediator Pakistan stating that the agreement will be signed on 19 June in Switzerland. Disha, managed by a Shipping Corporation of India-led consortium, is carrying 62,370 metric tonnes of LNG cargo, a Shipping Ministry official said. Quick answers to key questions • 5 QUESTIONS 1 What recent event allowed the Indian LNG carrier Disha to transit through the Strait of Hormuz? ⌵ The Indian LNG carrier Disha was able to transit through the Strait of Hormuz after a peace deal was finalized between the US and Iran, easing tensions in the region. 2 Why was the Strait of Hormuz under such tension for three months? ⌵ The Strait of Hormuz was under tension due to military conflicts between the US and Iran, which included blockades that disrupted trade and shipping lanes. 3 How does the US-Iran peace deal affect international shipping through the Strait of Hormuz? ⌵ The US-Iran peace deal is expected to reopen the Strait of Hormuz for international shipping, thus reducing shipping disruptions and improving trade stability.
4 Should businesses anticipate lower shipping costs now that the Strait of Hormuz is reopening? ⌵ Yes, businesses should anticipate lower shipping costs due to the reopening of the Strait of Hormuz, which is crucial for energy and trade flows, provided stability is maintained. 5 What impact did the tensions in the Strait of Hormuz have on India's energy imports? ⌵ Tensions in the Strait of Hormuz had a significant impact on India's energy imports, causing higher freight and insurance costs, and prompting some rerouting of cargo, which increased transit times. Also Read | Indian-flagged vessel MSV Virat 1 suffers engine failure off the coast of Oman Indian carrier exits Hormuz At a media briefing on recent developments in West Asia, Opesh Kumar Sharma, Director at the Ministry of Ports, Shipping and Waterways, said the vessel is expected to arrive at Gujarat's Dahej on 18 June. He added, “As we speak now, LNG carrier Disha, managed by a Shipping Corporation of India-led consortium, has safely transited the Strait of Hormuz, and she is carrying 62,370 metric tonnes of LNG cargo. The vessel is supposed to enter Dahej upon coming to India, likely on the 18th.” He added that the Ministry of Ports, Shipping and Waterways continues to coordinate with the Ministry of External Affairs, Indian missions abroad, shipping companies and other relevant stakeholders to ensure seafarer welfare and provide all assistance.
The LNG carrier had reportedly been stranded in the Strait of Hormuz since March and has finally been able to traverse it after Washington and Tehran agreed to a deal to reopen the waterway, which is responsible for transporting roughly a fifth of the world's oil supplies. Bloomberg reported that the LNG carrier, which is on a long-term charter with an Indian state-owned importer, is currently sailing through the eastern section of Hormuz toward the Gulf of Oman. The vessel had loaded LNG from Qatar's Ras Laffan export terminal around March 1, Bloomberg ship-tracking data showed. US-Iran peace deal implementation to face challenges? According to the report, while a peace deal that reopens the strategically crucial Strait of Hormuz and ends the opposing blockades would be positive for importers and global markets, implementing it could prove challenging because Tehran has significant influence through its control of the vital waterway. As a result, attention will turn to groups of ships waiting on either side of the Strait of Hormuz. Traders and shipowners will closely watch vessels anchored off Dubai and in the Gulf of Oman, as they could quickly begin crossing the waterway once conditions allow. In the meantime, shipowners are working through the news and trying to comprehend the details of the agreement between Washington and Tehran, which may not be available for days, leading to little observed traffic in and around the corridor in the early hours of Monday.
Confidence in resuming transit via Hormuz to take weeks? Citing shippers in Asia and Europe, Reuters reported that confidence in resuming transit through the Strait of Hormuz could take weeks to rebuild, and navigation will only restart once safety is assured, after the US and Iran agreed on a framework deal to reopen the waterway. A spokesperson for the Japanese Shipowners' Association said on Monday that while the group welcomed the peace agreement, it wanted to "wait a little longer for more concrete information," and added, "Given the situation, we cannot simply say, 'Right then, let's go' based on news of the agreement alone." Nippon Yusen, the country's biggest shipper, said it hoped operations would return to normal as soon as possible. Mitsui O.S.K. Lines said it would only resume navigation once safety had been fully confirmed. German shipowners' association VDR said on Monday it was "cautiously optimistic" about whether the US-Iran deal could reopen the Strait of Hormuz. In contrast, German shipper Hapag-Lloyd said it hoped that vessels would be able to cross the strait this week.
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