Iran exempts ships of four countries from Hormuz Strait restrictions

After maintaining restrictions in the Strait of Hormuz for a long time, Iran has now given special consideration to commercial shipping. Tehran will allow commercial vessels from four countries — India, China, Iraq and Qatar — to pass through the strait.

Amir Hayat-Moghaddam, deputy head of the Iranian parliament's national security and foreign policy committee, gave the information in an interview with the Iranian Students' News Agency (ISNA) on Tuesday (3 November).

Hayat-Moghaddam said the commercial ships of India, China, Iraq and Qatar have been exempted from the restrictions on smooth passage through the Strait of Hormuz, that those ships are moving freely, and that the Americans are not obstructing them either.

The report said the exemption was given to protect Iran's own interests with the countries concerned.

In the interview he said Iran eased the route for Indian ships to facilitate medicine imports from India. The purpose of exempting Chinese ships, on the other hand, is to secure that country's political support.

Hayat-Moghaddam said Iran collects a transit fee from Indian and Chinese ships. Qatari ships, however, have been allowed to pass without any fee.

He did not say in the interview whether a transit fee is charged for Iraqi ships.

After the conflict began in West Asia, India diversified its sources of oil imports. Buying oil from Russia, the United States, West Africa and Fujairah in the United Arab Emirates has reduced India's dependence on the Strait of Hormuz.

India imports about 90 percent of its crude oil needs. About 30 percent of those imports now come through the Strait of Hormuz, whereas in the past the figure was about 70 percent.

For liquefied petroleum gas (LPG), however, India's dependence remains much higher — about 90 percent of its LPG imports come through the Strait of Hormuz.

In addition, more than half of the LNG India imports from Qatar and the United Arab Emirates is transported through this waterway. The report also noted that the Strait of Hormuz is an important trade route for India's fertilizer imports.