Iran Effectively Closes Strait of Hormuz, Panjab Affected

After Israel and the US bombed Iran on 28 Feb, Iran effectively closed the Strait of Hormuz—one of the world’s most strategically important chokepoints, through which 20% of the world’s and nearly 40% of India's total oil and gas shipments pass. Iran has said it will allow only Chinese vessels to pass through the Strait as an expression of gratitude for Beijing's stand towards Tehran since the war began. On 10 Mar, Iran said it will allow vessels from any Gulf country that closes US bases in their territories and expels US diplomats. About 23K Indian sailors on 36 ships with USD 1B worth shipments are stuck in the Persian Gulf. Panjab was readying 90K MT Basmati rice for export to Iran which is now stalled. Following disruptions in Liquefied Natural Gas supply from Qatar—which supplies nearly 60% of India’s LNG—Gas Authority of India Limited has reduced gas supplies to National Fertilisers Limited plants located at Nangal, Ropar district and Bathinda. The resulting shortages would push up the prices of household staples such as wheat, rice, potatoes, and make animal feed more costly. The Indian union government has stopped commercial LNG supply to Panjab and other states, disrupting the hotel and welding industry. India is the world’s third-largest oil importer and is once again considering increasing Russian oil imports which India had been cutting back in response to US pressure, particularly after the US trade deal in February that rolled back punitive tariffs. On 6 Mar, US Treasury Secretary Scott Bessent posted on X that the US 'Treasury Department is issuing a temporary 30-day waiver to allow Indian refiners to purchase Russian oil.' In an interview Bessent said, ‘The Indians had been very good actors.’ The terms ‘waiver’, ‘allow’, and ‘actors’ led to a furore in India. India's Leader of Opposition Rahul Gandhi said the language shows how India’s foreign policy decisions are increasingly shaped by external pressures rather than national interest. Rahul said, 'What we are witnessing today is not policy. It is the result of the exploitation of a compromised individual,' referring to Indian Prime Minister Narendra Modi (earlier coverage).