Overview
- Satellite and market tracking show no oil or product tankers have transited the Strait of Hormuz since March 1, with war-risk cover withdrawn for transits and major lines suspending Middle East bookings or adding steep surcharges.
- India’s Jawaharlal Nehru Port reports about 1,000 export containers stuck since Saturday, including roughly 150 refrigerated onion consignments and other perishables, while rice exporters say 150,000–200,000 tonnes of basmati are held up at ports.
- Freight and insurance costs have jumped as carriers levy war surcharges of up to $4,000 per reefer and insurers issue 72‑hour cancellation notices, with Brent at $82–84 a barrel and Asian spot LNG at $24–25/MMBtu, which Crisil warns could pressure inflation and the current account.
- Energy supplies face mounting strain as Qatar’s Petronet LNG halted allocations to GAIL from March 4 due to vessel movement restrictions, adding to India’s exposure given that roughly half its LNG and up to half its crude typically move through Hormuz.
- Proposed US naval escorts and insurance backstops are meeting industry skepticism, while India weighs alternatives such as Russian cargoes, West African and Atlantic sourcing, limited pipeline bypasses, and strategic reserves, with analysts noting tight availability of Russian barrels and rising Urals prices.