Iran Grants Passage Rights Through Strait of Hormuz: Overview

In early 2024, the Iranian Ministry of Foreign Affairs officially granted passage rights through the Strait of Hormuz to India and four other countries, marking a significant development in regional maritime cooperation (The Hindu, 2024). The Strait of Hormuz, located between Oman and Iran, is a narrow maritime chokepoint approximately 39 km wide at its narrowest point (International Maritime Organization). It facilitates the transit of about 21 million barrels per day of crude oil, representing nearly 20% of global petroleum liquids trade (U.S. Energy Information Administration, 2023). This multilateral passage accord is rare in the geopolitically volatile Persian Gulf region and strategically enhances energy trade stability and maritime security for the beneficiary states.

Legal Framework Governing Passage Through Strait of Hormuz

The Strait of Hormuz is governed primarily by the United Nations Convention on the Law of the Sea (UNCLOS) 1982. Part III of UNCLOS defines the territorial sea and contiguous zone, while Part V covers the Exclusive Economic Zone (EEZ). Importantly, the Strait qualifies as an international strait under UNCLOS, allowing for transit passage rights that enable continuous and expeditious navigation by all ships and aircraft of all states, including warships, without prior notification or permission.

India’s domestic maritime boundaries are defined under the Indian Maritime Zones Act, 1976, which delineates territorial waters, contiguous zones, EEZ, and continental shelf. While the Act does not directly regulate passage through foreign straits, it frames India’s maritime jurisdiction and strategic interests in safeguarding sea lanes critical for energy imports.

• UNCLOS Part III (Territorial Sea): Territorial waters extend up to 12 nautical miles from baseline, but international straits permit transit passage.
• UNCLOS Part V (EEZ): Coastal states have rights over resources up to 200 nautical miles but cannot impede transit passage.
• Indian Maritime Zones Act, 1976: Defines India’s maritime zones, supporting naval operations to secure energy routes.

Economic Significance of Hormuz Passage for India

The Strait of Hormuz is vital for India’s energy security. India imports over 80% of its crude oil, with approximately 60% sourced from Middle Eastern countries, predominantly Saudi Arabia, Iraq, and Iran (Ministry of Petroleum and Natural Gas, 2023). The uninterrupted flow of oil through Hormuz directly impacts India’s energy import bill, which was approximately $180 billion in FY2023.

Disruptions or blockades in Hormuz have historically caused spikes in global oil prices and threatened supply chains. India’s increased naval presence in the Persian Gulf — up by 30% over the last five years (Indian Navy Annual Report, 2023) — underscores the strategic priority accorded to securing this maritime chokepoint.

• 21 million barrels per day transit volume through Hormuz (~20% global oil trade).
• India’s crude oil import dependency: 80% total imports; 60% from Middle East.
• Energy import bill impact: $180 billion in FY2023.
• Indian Navy’s enhanced deployment in Persian Gulf by 30% since 2018.

Key Institutions Involved in Hormuz Passage and Security

Several institutions play critical roles in managing and securing passage through the Strait of Hormuz:

• Ministry of External Affairs (MEA), India: Leads diplomatic negotiations and policy formulation regarding maritime security and bilateral relations with Iran and Gulf states.
• Indian Navy: Ensures maritime security, conducts patrols and escorts oil tankers through strategic chokepoints.
• International Maritime Organization (IMO): Regulates international shipping, navigation safety, and environmental standards in straits like Hormuz.
• Iranian Ministry of Foreign Affairs: Grants passage rights and manages regional maritime cooperation.
• U.S. Energy Information Administration (EIA): Provides authoritative data on global energy flows through Hormuz.

Comparative Analysis: Hormuz vs Other Strategic Maritime Chokepoints

Similar to the Strait of Malacca, where Singapore and Malaysia jointly manage maritime security to ensure uninterrupted trade, Iran’s multilateral granting of passage rights reflects a strategic shift towards cooperative security in a historically tense region. This contrasts with unilateral blockades or confrontations seen at chokepoints like the Bab-el-Mandeb Strait, where geopolitical rivalries have escalated maritime insecurity.

Critical Gaps in Multilateral Maritime Security Framework

Despite the passage rights granted, India lacks a formal multilateral security framework with Iran and other regional actors to collectively address threats such as piracy, terrorism, or geopolitical disruptions in the Strait of Hormuz. Competitors like China have institutionalized such cooperation through mechanisms like the Shanghai Cooperation Organisation (SCO) naval exercises, enhancing collective maritime security and intelligence sharing.

• No formal India-Iran multilateral naval security pact exists.
• Absence of joint anti-piracy or counter-terrorism maritime patrols in Hormuz.
• Geopolitical tensions, especially involving the U.S. and Gulf states, complicate multilateral frameworks.
• Potential for India to initiate regional security dialogues leveraging MEA and Indian Navy’s increasing presence.

Significance and Way Forward

Iran’s granting of Hormuz passage rights to India and four other countries strategically enhances India’s ability to secure uninterrupted energy imports through a critical maritime chokepoint. This development complements India’s naval diplomacy and energy security imperatives by formalizing transit rights in a volatile region.

However, to fully leverage this advantage, India must pursue formal multilateral maritime security cooperation with Iran and other Gulf states to collectively manage emerging threats. Strengthening intelligence sharing, joint naval exercises, and coordinated patrols can mitigate risks from piracy and geopolitical disruptions. Additionally, aligning this framework with international maritime law under UNCLOS will reinforce India’s claims and operational freedom in the region.

• Institutionalize a multilateral maritime security framework with Iran and Gulf partners.
• Expand Indian Navy’s presence and joint exercises in the Persian Gulf.
• Leverage MEA’s diplomatic channels to balance regional geopolitical tensions.
• Ensure compliance with UNCLOS provisions to safeguard transit passage rights.