Hormuz Strait Reopening — India Trade Update

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Strait of Hormuz Reopening June 2026 — Update for Indian Exporters and Importers

Hormuz Strait Reopening — India Trade Update

🔴 LIVE UPDATE — June 29 2026: US and Iran have halted attacks and agreed to resume Strait of Hormuz talks in Doha. Commercial shipping is resuming. Oil prices down 3.92% to USD 73.49. Talks ongoing.

The Strait of Hormuz — the world's most critical energy shipping lane — is reopening after four months of disruption. A US-Iran Memorandum of Understanding signed on June 17 2026 marked a turning point. Ships are moving again. India-bound vessels are clearing the Strait. And diplomatic efforts are continuing to fully restore normal commercial traffic.

Here is the complete picture of what happened, what India did to protect its trade interests, and where things stand for Indian exporters and importers right now.

What is the Strait of Hormuz and Why Does It Matter for India

The Strait of Hormuz is a narrow waterway connecting the Persian Gulf to the Gulf of Oman and the open ocean. Before the 2026 disruption, roughly 25 percent of the world's seaborne oil trade and 20 percent of global LNG passed through it every single day.

For India specifically the numbers are even more significant. Over 40 percent of India's crude oil imports and 90 percent of all LPG imports come through this route. Gulf countries — UAE, Saudi Arabia, Kuwait, Iraq, Qatar, Oman — are among India's most important trading partners for both exports and energy imports. The Strait is the gateway for all of it.

The June 17 US-Iran MoU — A Major Diplomatic Development

On June 17 2026 US President Donald Trump and Iranian President Masoud Pezeshkian signed a Memorandum of Understanding at the Palace of Versailles following the G7 summit. The agreement provided for an immediate ceasefire, the reopening of the Strait of Hormuz on a toll-free basis for at least 60 days, the withdrawal of the US naval blockade on Iranian ports, and 60 days of follow-on nuclear talks.

On June 18 the US lifted the Hormuz blockade. Commercial vessels began transiting immediately — including the first Saudi-owned tonnage to move since February. Ships are advised to use the northern Iranian-waters route and the southern Omani-waters coastal route while the central deep-water channel is being cleared of mines — a process expected to take 40 to 50 days.

✅ Key Highlight: Since the June 17 MoU, 11 India-bound vessels have successfully transited the Strait of Hormuz — including three Indian-flagged crude oil tankers each carrying over 285,000 metric tonnes of crude, one LPG carrier and six bulk carriers transporting fertilisers. Confirmed by India's Ministry of External Affairs on June 23 2026.

India's Diplomatic Response

Throughout the four-month disruption India maintained active diplomatic engagement on multiple fronts. The Ministry of External Affairs tracked every Indian vessel stranded in the Persian Gulf and provided regular public updates. India pressed for freedom of navigation through international forums including the UN, G20 and bilateral diplomatic channels with Gulf capitals.

The government also moved quickly on the domestic side. Commerce Minister Piyush Goyal announced insurance support for exporters covering damage, loss and excessive delays linked to the Strait disruption. The government approved ECLGS 5.0 — an emergency credit line scheme providing Rs 2.55 lakh crore in additional credit for MSMEs, industries and the aviation sector to help businesses manage the working capital pressure from the disruption.

Current Status — June 29 2026

📊 Live Numbers as of June 29:
• Commercial transit: Rising — roughly 35 to 45 vessels per frame vs 93 per day pre-crisis
• Oil price: Brent USD 73.49 — down from crisis peak
• US Energy Secretary confirmed 20 million barrels of oil exited Hormuz in a single day on June 21 — a new record
• US and Iran agreed to resume talks in Doha — June 28
• IMO seafarer evacuation plan active for remaining stranded vessels

The reopening is progressing steadily. Commercial tankers are back in through-traffic. Oil volumes through the Strait on June 21 set a single-day record according to the US Energy Secretary. Brent crude has fallen significantly from its crisis peak as markets price in the restoration of supply.

Talks between US and Iran delegations are continuing — technical discussions on full implementation of the MoU including uranium stockpile arrangements, enrichment conditions and IAEA verification are ongoing in Doha. The diplomatic track is active and both sides are engaged.

What This Means for Indian Exporters and Importers Now

The situation is improving steadily and the direction is positive. For Indian exporters with Gulf buyers the practical steps to take right now are straightforward.

Review your Letter of Credit terms with Gulf buyers — if your LC validity was set before the disruption began, discuss extending it with buyers to account for the transit restoration timeline. Gulf buyers are also managing their own logistics adjustments and most are willing to work constructively on documentation timelines.

For importers of crude oil, LPG and fertilisers — supply is resuming through the Strait and prices have come down from crisis levels. Forward contracting where possible will provide cost visibility as the route fully normalises over the next 40 to 60 days.

War risk insurance premiums remain elevated but are trending downward as the diplomatic situation improves. Speak to your insurance broker and freight forwarder about current rates before booking your next Gulf-bound shipment.

📌 Source: Ministry of External Affairs India | IMO | Global Energy Flow | Hormuz Strait Monitor | Al Jazeera | June 29 2026