Iran, in a late evening move, closed the busy Strait of Hormuz on Saturday, triggering fears of a spike in crude oil and natural gas prices. A fifth of global crude oil flows through the waterway, including some 2 million barrels per day (bpd) crude oil of India’s total import transits.
For New Delhi, the closure of the strait may impact crude oil prices and lead to a disruption in supplies. Pertinently, India’s principal supplier of liquefied natural gas, Qatar, does not use the Strait of Hormuz for supply.
The United Kingdom Maritime Trade Operations (UKMTO) put out an advisory on Saturday night saying “vessels operating in the Arabian Gulf have stated that VHF Channel 16 (open channel for communication at sea) broadcasts have claimed that the Strait of Hormuz has been closed”. These broadcasts had been made by the Iranians, mariners reported.
The UKMTO said VHF broadcasts or statements indicating closure of the strait were not legally binding, and did not constitute a lawful restriction on navigation under international law, including the United Nations Convention on the Law of the Sea (UNCLOS).
Every day, 17 to 21 million barrels of crude oil and fuel flow through the strait.
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