Iran has been using access to the Strait of Hormuz as leverage to strengthen economic and diplomatic ties with select countries. (Photo: Reuters)

Iran allows Indian ships free passage through Strait of Hormuz amid tensions

Iran has exempted vessels from India, China, Iraq and Qatar from transit restrictions in the Strait of Hormuz. Tehran says the arrangement reflects mutual interests, including medicine imports from India and political support from China.

by · India Today

In Short

  • Iran exempts vessels from India, China, Iraq and Qatar in Strait of Hormuz
  • Exemption linked to Tehran's strategic interests with these countries
  • Strait is vital for India's energy imports, carrying major crude oil and gas shipments

Iran has exempted vessels from India, China, Iraq and Qatar from restrictions on passage through the Strait of Hormuz, with a senior Iranian lawmaker saying the arrangement is linked to Tehran's interests with the four countries. The announcement could offer some relief to Indian shipping at a time when the strategic waterway has been caught up in the conflict between Iran, the US and Israel.

Amir Hayat Moqaddam, deputy chairman of the Iranian parliament’s National Security and Foreign Policy Committee, disclosed the exemptions in an interview with the Iranian Students' News Agency on Tuesday.

"We have currently exempted India, China, Iraq and Qatar from transit restrictions in the Strait of Hormuz. Ships from these countries pass freely, and the Americans do not intercept them either," he said, as quoted by local media.

Iran has been using access to the Strait of Hormuz as leverage to strengthen economic and diplomatic ties with select countries, even as restrictions on other vessels remain in force.

According to local media, the arrangement appears to be driven partly by Tehran's need for essential medicines. Iran has faced difficulties accessing certain international markets and financial channels because of sanctions and the ongoing conflict. India, with its large pharmaceutical manufacturing sector, is an important potential supplier of medicines and medical products. By allowing Indian ships to pass through the strait, Tehran can facilitate the movement of goods it needs from India.

Meanwhile, for China, the calculation appears more political. Moqaddam said the exemption was intended to secure Beijing's support. China is an important partner for Iran, particularly in trade and energy, and its diplomatic backing carries weight as Tehran faces pressure from Washington and its allies.

WHY THE STRAIT OF HORMUZ MATTERS TO INDIA

The Strait of Hormuz is a narrow stretch of water between Iran and Oman that connects the Persian Gulf with the Gulf of Oman and the Arabian Sea. It is one of the world's most important maritime chokepoints, serving as a major route for oil and gas shipments from Gulf producers to international markets.

For India, the Strait of Hormuz is a critical energy lifeline, carrying a substantial share of its crude oil, liquefied petroleum gas (LPG) and liquefied natural gas (LNG) imports. Before the 2026 conflict, around 45 per cent of India's crude oil imports and nearly 90 per cent of its imported LPG passed through the waterway, according to the Union Petroleum Ministry. India also relies heavily on the strait for LNG supplies, with the International Energy Agency estimating that nearly two-thirds of its LNG imports came through the route in 2025, largely from Qatar and the UAE.

The conflict has made the passage increasingly uncertain for commercial vessels. The US and Israel launched military operations against Iran on February 28, 2026, triggering a wider regional confrontation. A ceasefire was reached in April, but fighting between Washington and Tehran resumed in July after diplomatic efforts to end the conflict stalled.

Against this backdrop, Iran's decision to exempt ships from four countries could provide some relief to their maritime trade.

- Ends