Indian LNG carrier exits Strait of Hormuz after 3 months as US-Iran peace deal eases tensions | Today’s news
India’s liquefied natural gas (LNG) carrier Disha sailed safely through the Strait of Hormuz on Monday, becoming the first Indian-flagged LNG vessel to leave the war zone in over three months.
The development comes about a day after US President Donald Trump announced that the Iran peace deal was “now complete”, with broker Pakistan saying the deal would be signed on June 19 in Switzerland.
Disha, which is managed by a consortium led by the Shipping Corporation of India, carries 62,370 metric tonnes of LNG cargo, a transport ministry official said.
Quick answers to key questions
•5 QUESTIONS
India’s LNG carrier Disha was able to pass through the Strait of Hormuz after a peace deal was reached between the US and Iran, easing tensions in the region.
The Strait of Hormuz has been under tension due to military conflicts between the US and Iran, which have included blockades that have disrupted trade and shipping routes.
The US-Iran peace deal is expected to reopen the Strait of Hormuz to international shipping, reducing disruption to shipping and improving trade stability.
Yes, businesses should expect lower shipping costs due to the reopening of the Strait of Hormuz, which is critical for energy and trade flows, provided stability is maintained.
Tensions in the Strait of Hormuz have had a significant impact on India’s energy imports, causing higher shipping and insurance costs and causing some cargo diversion, which has increased transit times.
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Indian carrier leaves Hormuz
Addressing a press conference on recent developments in West Asia, Opesh Kumar Sharma, director of the Ministry of Ports, Shipping and Waterways, said the vessel is expected to arrive in Gujarat’s Dahej on June 18. He added: “As we speak, the LNG carrier Disha, managed by the Shipping Corporation of India consortium, has safely passed through the Strait of Hormuz carrying a cargo of 62,370 metric tonnes of LNG. The vessel is scheduled to enter Dahej on arrival in 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 the welfare of seafarers and provide all assistance.
Read also | US-Iran deal eases Hormuz shipping, boosts India’s trade and energy outlook
An LNG ship reportedly stuck in the Strait of Hormuz since March was finally able to pass after Washington and Tehran agreed on a deal to reopen the waterway, which is responsible for transporting about a fifth of the world’s oil supplies.
Bloomberg reported that the LNG carrier, which has a long-term charter with an Indian state importer, is currently passing through the eastern part of Hormuz towards the Gulf of Oman. The vessel loaded LNG from Qatar’s Ras Laffan export terminal around March 1, Bloomberg ship tracking data showed.
US-Iran peace deal facing challenges?
According to the report, while a peace deal that reopens the strategically key Strait of Hormuz and ends hostile blockades would be positive for importers and global markets, it could prove difficult to implement as Tehran wields significant influence through control of the vital waterway.
As a result, attention turns to groups of ships waiting on both sides of the Strait of Hormuz. Traders and ship owners will be keeping a close eye on vessels anchored off Dubai and the Gulf of Oman as they could quickly begin crossing the waterway as soon as conditions allow.
Meanwhile, shipowners are processing the news and trying to understand the details of the deal between Washington and Tehran, which may not be available for several days, leading to little observed traffic in and around the corridor in the early hours of Monday.
Read also | US-Iran peace deal: Here’s a draft memorandum of understanding
Confidence in restoring transit through Hormuz will take weeks?
Citing shippers in Asia and Europe, Reuters said it could take weeks to restore confidence in resuming transit through the Strait of Hormuz, and navigation would resume only after security was assured after the US and Iran agreed on a framework deal to reopen the waterway.
A spokesman for the Japan Shipowners’ Association said on Monday that while the group welcomed the peace deal, it wanted to “wait a little longer for more concrete information”, adding: “Given the situation, we cannot simply say ‘Now, let’s go’ just based on the news of the deal.”
Nippon Yusen, the country’s largest carrier, said it hoped operations would return to normal as soon as possible. Mitsui OSK Lines said it will resume navigation only after safety is fully confirmed.
Germany’s GDR shipowners’ association 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 vessels would be able to pass through the strait this week.
