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Relevance: GS Paper II — International Relations, West Asia, Indian Diaspora; GS Paper III — Energy Security Source: Reuters / CENTCOM, July 2026

1 · What happened

On 11 July 2026, Iran’s Islamic Revolutionary Guard Corps (IRGC) attacked the M/V GFS Galaxy, a Cyprus-flagged container ship, near the Strait of Hormuz. The engine room was badly damaged and one crew member went missing. Iran said it had only fired a warning shot at a ship using an “unauthorised route”.
Hours later, Iran declared the Strait of Hormuz closed “until further notice”. The United States rejected the claim. US Central Command (CENTCOM) hit around 140 Iranian military targets, its third round of strikes that week. Iran replied by striking Prince Hassan Air Base in Jordan; the UAE and Qatar intercepted incoming missiles and drones.

2 · Why the Strait of Hormuz Matters

The Strait of Hormuz is a narrow sea passage joining the Persian Gulf to the Gulf of Oman and the Arabian Sea. Iran lies to its north. Oman and the UAE lie to its south. At its narrowest, it is only about 33 km wide. Nearly one-fifth of the world’s oil and LNG passes through it. This makes it the world’s most important oil chokepoint.

The Legal Anchor
UNCLOS and Transit Passage
Under the UN Convention on the Law of the Sea (UNCLOS), Hormuz falls under transit passage. All ships and aircraft may pass through freely and without delay. A coastal state cannot block or tax this passage.
The Diplomatic Track
Oman as Mediator
Oman has proposed free passage through the southern corridor (Omani waters), while ships using the northern corridor (Iranian waters) would need Iran’s prior approval, but pay no toll. Talks are ongoing.
The Dispute
Two Opposite Claims
Iran says only it can control transit through the strait, and has declared it closed. The US says the strait remains open, and insists on freedom of navigation in international waters.
The Risk for India
Oil, People, Sailors
India imports over 80% of its crude oil, much of it from the Gulf. Around 8.5 million Indians live in GCC countries. Indians also form a large share of the world’s merchant navy crews.

  • Background: The present war began with US and Israeli strikes on Iran on 28 February 2026. A ceasefire was attempted, but it has now collapsed. Iran’s new Supreme Leader is Ayatollah Mojtaba Khamenei.
  • Energy shock: Any long closure of Hormuz pushes up global crude prices at once. For India, this means imported inflation, a wider Current Account Deficit (CAD), and pressure on the rupee.
  • India’s response: India condemned the attack on the vessel. 10 Indian crew members were rescued and one is missing. India’s position has been to call for de-escalation and safe passage for merchant ships.
  • Why India cannot simply pick a side: India has close energy and diaspora ties with the Gulf Arab states, a strategic partnership with the US, and a long-standing interest in Iran through the Chabahar Port. Balancing all three is the challenge.
  • Way forward: Diversify crude sources (Russia, Africa, the US), expand Strategic Petroleum Reserves (SPR), strengthen naval escorts for Indian-crewed ships, and use diplomatic weight with both Washington and Tehran to push for calm.

UPSC Value Box
Strait of Hormuz Connects the Persian Gulf with the Gulf of Oman. Iran to the north; Oman and UAE to the south. About 33 km wide at the narrowest. Carries roughly one-fifth of global oil and LNG.
Transit Passage (UNCLOS) Right of continuous and speedy passage through straits used for international navigation. Cannot be suspended by a coastal state. Applies to both ships and aircraft.
Innocent Passage A weaker right, applying in territorial seas. Unlike transit passage, submarines must surface and it can be temporarily suspended. Often confused with transit passage.
IRGC Islamic Revolutionary Guard Corps. A separate armed force from Iran’s regular army, answering directly to the Supreme Leader. Its Navy operates in the Persian Gulf.
CENTCOM US Central Command. The US combatant command responsible for West Asia, Central Asia and Egypt.
GCC Gulf Cooperation Council (1981). Six members: Saudi Arabia, UAE, Qatar, Kuwait, Bahrain, Oman. Home to about 8.5 million Indians and a major source of remittances.
Other Oil Chokepoints Bab-el-Mandeb (Red Sea–Gulf of Aden), Suez Canal, Strait of Malacca, Bosporus, Panama Canal. Hormuz is the busiest for oil.
Strategic Petroleum Reserve India’s emergency crude stock, managed by ISPRL under the Ministry of Petroleum. Existing caverns at Visakhapatnam, Mangaluru and Padur. Covers only a few days of imports.
Chabahar Port Iranian port on the Gulf of Oman, developed with Indian help. It lies outside the Strait of Hormuz, which is exactly why it matters for India’s access to Afghanistan and Central Asia.

MCQ Practice Question
Q. With reference to the Strait of Hormuz, consider the following statements:

  1. It connects the Persian Gulf with the Gulf of Oman, and is bordered by Iran on one side and Oman and the United Arab Emirates on the other.
  2. Under the United Nations Convention on the Law of the Sea (UNCLOS), the Strait is governed by the regime of “innocent passage”, which a coastal state may temporarily suspend on security grounds.
  3. India’s Chabahar Port lies outside the Strait of Hormuz, on the Gulf of Oman.

Which of the statements given above is/are correct?
(a) 1 and 2 only    (b) 2 and 3 only    (c) 1 and 3 only    (d) 1, 2 and 3

Answer: (c) 1 and 3 only

  • Statement 1 — Correct: The Strait of Hormuz links the Persian Gulf to the Gulf of Oman. Iran lies to its north, and Oman and the UAE to its south.
  • Statement 2 — Incorrect (the trap, swapped regimes): Hormuz is governed by transit passage, not innocent passage. Transit passage cannot be suspended by a coastal state. Innocent passage is the weaker right that applies in territorial seas and can be temporarily suspended.
  • Statement 3 — Correct: Chabahar Port is located on Iran’s south-eastern coast, on the Gulf of Oman. It lies outside the Strait of Hormuz. This is precisely why it is strategically valuable for India, as goods can reach it without passing through the chokepoint.
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