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Business News India: Latest Business News Today, Share Market, Economy

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Iran has a strict mechanism in place at Hormuz. Then how ...
2026-05-21 · via Business News India: Latest Business News Today, Share Market, Economy

Strait of Hormuz blockade: The arrangements for Indian-flagged ships are part of a wider mechanism Iran has set up for clearing vessels through the strait.

Iran has a strict mechanism in place at Hormuz. Then how are Indian-flagged vessels safely crossing the strait?Strait of Hormuz blockade: Report details how Indian-flagged vessels are safely crossing the pathway

Strait of Hormuz blockade: Even amid the blockade of the Strait of Hormuz, as many as 13 Indian-flagged vessels have reached the country’s shores. A detailed report shows how Indian vessels, and by extension the Indian government, are ensuring that country-flagged ships safely pass through the strait.  

According to an exclusive report by Reuters, Indian-flagged vessels are crossing the Strait of Hormuz after a clearance process enforced by Iran. Ships move only after coordination between New Delhi, Iranian authorities and the Indian Navy. 

India uses its embassy in Tehran to liaise with Iranian authorities, including the Islamic Revolutionary Guard Corps and the Iranian navy, which vet ships that India wants to sail out of the Gulf.

Once clearance is granted, ship captains receive a route to follow and sail out of the area with guidance from the Iranian navy. Ships are instructed to switch off their location transponders and avoid satellite communications. After Iran grants permission, the Indian Navy directly contacts shipmasters of Indian-flagged vessels in the Gulf and provides waypoints.

An Indian shipping industry source told the news agency that the Indian Navy told them to stop if Iranians ask and to move if instructed. The shipping ministry official added that captains are strictly told to follow the given route. 

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IRAN’S HORMUZ MECHANISM

The arrangements are part of a wider mechanism Iran has set up for clearing vessels through the strait. Reuters reported that Iran's control of the strait involves government-to-government arrangements, intense vetting by the Iranian government and, in some cases, fees for safe passage. The IRGC oversees Iranian security and evaluates ships.

Under bilateral arrangements, countries contact Iran's foreign minister to request permission. Requests are forwarded to the Supreme National Security Council, which includes the IRGC and representatives of Supreme Leader Mojtaba Khamenei. Countries like India, which imports about 90 per cent of its oil and 50 per cent of its gas through Hormuz, have worked out different arrangements.

To determine the route, Reuters interviewed multiple sources and analysed ship movements to understand the evolving mechanism. By early May, around 1,500 vessels with 22,500 sailors were trapped in the Gulf, according to the US military.

The International Energy Agency called the blockade of the strait the world's worst energy crisis. Apart from Iran’s control, the US Navy has imposed its own blockade outside the strait. Between April 18 and May 6, fewer than 60 ships passed through, compared to 120 to 140 ships daily before the war.

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NO US-ISRAEL SHIPS ALLOWED

Iran has barred ships linked to the US or Israel from crossing. The US Treasury Department said it is ready to act against foreign companies supporting illicit Iranian commerce. US sanctions bar American citizens from transactions with Iran, and non-Americans may face secondary sanctions. Many Western governments maintain their own restrictions on Iran.

Two senior Iranian officials said ships are sometimes charged security and navigation fees that vary by cargo, though not all countries face these charges. International maritime law prohibits charging for safe passage through a strait, but fees for security or services are allowed if applied equally.

Outside government agreements, the IRGC conducts a detailed vetting process. It reviews affiliation documents to identify connections to the US or Israel. The process takes about a week and may include physical inspections of ships. Documents reviewed by Reuters show ship owners must disclose cargo value, flag, origin and destination, registered owner and manager, and crew nationalities. The Persian Gulf Strait Authority, recently established, approves and taxes vessel transits.

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Published on: May 21, 2026 8:17 AM IST