India-Bound Oil Tankers Cross Strait of Hormuz With Tracking Switched Off Amid Rising West Asia Shipping Risks
Two tankers carrying 3 million barrels of crude oil for India transit Hormuz quietly as geopolitical tensions intensify
Two oil tankers carrying crude oil destined for India recently passed through the strategically critical Strait of Hormuz with their tracking transponders switched off, highlighting the growing risks surrounding global energy shipments as tensions in West Asia escalate.
According to ship-tracking data from maritime analytics firm Kpler, the two vessels crossed the narrow waterway between March 5 and March 10, transporting a combined 3 million barrels of Iraqi and Saudi crude oil. One of the tankers was loaded from the Al-Basra oil terminal in southern Iraq, while the other carried crude from Saudi Arabia’s eastern coast.
The disabling of ship transponders — devices that normally transmit vessel location data — is often interpreted as a precautionary measure taken during periods of heightened security risk. Shipping companies sometimes adopt such practices when navigating sensitive geopolitical zones to avoid being easily tracked.
The development underscores the growing fragility of global oil logistics as the conflict in West Asia intensifies and maritime trade routes in the region face increasing threats.
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Strait of Hormuz remains the world’s most critical oil shipping chokepoint
The Strait of Hormuz, located between Iran and Oman, is widely considered one of the most strategically important maritime passages in the global energy market. The narrow channel, roughly 55 kilometres wide, connects the Persian Gulf to the Arabian Sea, serving as a vital route for oil shipments from major producers in the Middle East.
According to data from the US Energy Information Administration (EIA), an average of 20 million barrels per day of crude oil and petroleum products passed through the Strait of Hormuz in 2025, representing nearly 25 percent of global seaborne oil trade.
Any disruption to shipping in this region has immediate consequences for global oil prices and energy supply chains. The latest geopolitical tensions in West Asia have once again placed the spotlight on the vulnerability of this critical route.
Recent reports suggest that shipping companies and oil traders are increasingly adopting unusual routing strategies and security precautions while navigating the region, as risks to commercial vessels have increased significantly.
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Shipping risks escalate after vessel attack near Hormuz
The growing concerns about maritime safety intensified after a Thailand-flagged bulk carrier heading for India was attacked while passing through the Strait of Hormuz earlier this week.
The attack triggered a fire onboard the vessel and required an emergency rescue operation, highlighting the escalating security risks faced by ships transiting the region.
The incident has further heightened fears among global shipping companies and energy traders that continued hostilities could threaten the stability of oil supply routes in the Middle East.
Such developments have also increased insurance costs and security measures for vessels operating in the region, potentially pushing global shipping and energy transportation costs higher in the coming weeks.
For India, which relies heavily on crude oil imports from the Middle East, any prolonged disruption in this corridor could have significant implications for energy security, fuel prices and inflation.
India ramps up diplomatic engagement to safeguard energy supplies
Amid the rising tensions, India has stepped up diplomatic efforts to ensure that its energy supply chain remains secure.
External Affairs Minister S. Jaishankar held discussions with Iran’s Foreign Minister Seyed Abbas Araghchi, marking their third conversation since the West Asia crisis began. The talks were part of New Delhi’s broader efforts to safeguard its strategic interests and ensure the uninterrupted flow of energy supplies.
India imports more than 80 percent of its crude oil requirements, with a significant portion sourced from Middle Eastern producers such as Saudi Arabia, Iraq and the United Arab Emirates.
Given this heavy dependence, maintaining access to safe shipping routes is critical for the country’s energy security.
The government has also confirmed that it is closely monitoring developments in the region, particularly the safety of Indian vessels and seafarers operating in the Persian Gulf.
Dozens of Indian vessels operating in the Persian Gulf region
According to the Ministry of Ports, Shipping and Waterways, as many as 28 Indian-flagged vessels are currently operating in the Persian Gulf region.
Among these vessels:
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24 ships are located west of the Strait of Hormuz, carrying 677 Indian seafarers
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4 vessels are operating east of the strait, with 101 Indian crew members onboard
Authorities have said they are actively tracking the movements and security of these ships amid the escalating regional tensions.
The government has also coordinated with shipping companies to ensure that adequate safety protocols and contingency plans are in place for vessels operating in high-risk zones.
India increases oil imports through alternative routes to bypass Hormuz
As tensions intensify and the Strait of Hormuz faces increasing disruptions, Indian refiners have begun shifting a larger portion of crude oil imports to alternative routes and pipeline networks in order to reduce exposure to the chokepoint.
One of the most significant alternatives is Saudi Aramco’s East-West pipeline, which transports crude oil from Abqaiq to the Red Sea port of Yanbu, allowing shipments to bypass the Strait of Hormuz entirely. The 1,200-kilometre pipeline has a capacity of about 5 million barrels per day.
Similarly, the Habshan-Fujairah pipeline operated by Abu Dhabi National Oil Company (ADNOC) can transport around 1.5 million barrels per day directly to the Gulf of Oman.
Both of these pipeline systems are currently operating at full capacity as energy exporters attempt to maintain oil shipments despite the ongoing conflict.
As a result of these adjustments, government data indicates that around 75 percent of India’s crude oil imports are now arriving through routes other than the Strait of Hormuz, compared with about 55 percent earlier.
Here’s what happened today and why traders reacted
The developments surrounding the Strait of Hormuz have drawn significant attention from energy markets and investors due to their potential impact on global oil supply.
Key factors influencing market sentiment include:
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Two India-bound oil tankers crossing Hormuz with tracking systems switched off
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Rising security threats after shipping attacks near the strait
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Increased geopolitical tensions between Iran and the United States
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Growing concerns about potential oil supply disruptions
These developments have kept crude oil markets volatile and pushed traders to closely monitor shipping movements and geopolitical updates from the region.
What this means for markets and investor portfolios
For investors and traders, the escalating tensions in the Strait of Hormuz highlight the importance of geopolitical risk in shaping global commodity markets.
If disruptions in oil shipments intensify, several consequences could follow:
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Crude oil prices could remain elevated or rise further
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Energy companies and oil producers may benefit from higher prices
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Sectors dependent on fuel — such as aviation and logistics — could face cost pressures
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Inflation risks could increase globally due to higher energy costs
For India, maintaining diversified energy supply routes will be critical in ensuring stability in domestic fuel markets.
As geopolitical tensions continue to unfold in West Asia, investors will closely track developments in the Strait of Hormuz, global oil prices and shipping security, as these factors are likely to play a decisive role in shaping both commodity markets and broader financial market sentiment in the coming weeks.
