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According to March 16, 2026 sources quoted in Reuters and other sources, Iran has also been reported to have made two stern conditions before allowing Indian-flagged or India-bound vessels to pass through the strategically vital Strait of Hormuz during the ongoing US-Israel-Iran war.

The first one is that three Iranian tankers that were captured by Indian authorities in other maritime disputes be returned. Secondly, case-by-case approvals of Iran to transit vessels are unacceptable regardless of the fact that a handful of LPG vessels were allowed to pass, such as Shivalik and Nanda Devi, despite high-level discussions between EAM S. Jaishankar and Iranian FM Abbas Araghchi.

Iranian ambassador in India Mohammad Fathali affirmed the selective permission by saying that India is a friend, yet that the ships must meet the interests of Tehran or risk being sunk. India has been demanding safe passage through over 20 of the stranded ships to the west of the strait, which is significant to 40 percent of the imported crude.

The circumstances point to the power of Iran over the chokepoint that has led to a supply shock, a crunch in LPG in India, and an extreme oil price in the world markets. The diplomatic processes are going on, and no complete solution has yet been arrived at.