On March 12, 2026, two oil tankers carrying roughly 3 million barrels of West Asian oil arrived in India, marking a significant development in the country’s energy supply amid ongoing geopolitical tensions. One of the tankers, the Liberia-flagged Shenlong, is transporting around 1 million barrels of crude oil from Saudi Arabia, while the other is an India-flagged VLCC carrying approximately 2 million barrels from Iraq.

The arrival of these tankers has raised hopes for more energy supplies to India, especially as the nation relies on imports for around 60% of its liquefied petroleum gas (LPG) requirement, with 90% of these imports passing through the strategically vital Strait of Hormuz.

Diplomatic Engagements and Energy Security

In light of the current situation, India is actively negotiating with Iran to ensure the safe passage of vessels headed to its shores. Randhir Jaiswal, the External Affairs Minister of India, noted, “The External Affairs Minister and the Foreign Minister of Iran have had three conversations in recent days.” This diplomatic engagement aims to keep the sea route open for Indian vessels, ensuring that shipments of crude oil and LPG continue without major disruption.

However, disruptions linked to the ongoing conflict involving the US, Israel, and Iran, along with instability around the Strait of Hormuz, have triggered a shortage of commercial LPG in India. Observers note that these developments have significantly affected the hospitality sector, which relies heavily on consistent LPG supplies.

On the same day, the Indian Oil Corporation (IOC) recorded a total traded volume of 56,34,938 shares, with its stock opening at ₹157.40, down 2.01% from the previous close of ₹160.63. The last traded price was ₹157.20, reflecting a day’s loss of 1.43%. IOC currently holds a market capitalization of ₹2,26,928 crores.

As the situation unfolds, the exact permission status from Iran for the two oil tankers to cross the Strait of Hormuz remains unclear. Additionally, the long-term implications of the current disruptions in LPG supply are uncertain. PM Modi has reportedly emphasized that the challenges faced are not unique to India, assuring that the government is prepared to handle any disruptions effectively.

Details remain unconfirmed.

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