Relevance: GS II (International Relations) & GS III (Energy Security) | Source: The Hindu/ Indian Express

1. What is the News?

• The India Link: A ship named Mayuree Naree, which was bringing goods to Gujarat, was hit by a missile in the Strait of Hormuz. Some Indian crew members are missing, and India has strongly condemned these attacks.

2. Why is this Sea Route so Important?

• The ‘Energy Jugular’: The Strait of Hormuz is a very narrow water passage. It is the most important “choke-point” in the world because nearly 20% (one-fifth) of all global oil passes through it.
• Price Hike: Because of the war, the price of crude oil has jumped by 20%. To stop a global economic crisis, the International Energy Agency (IEA) has released its largest-ever emergency oil supply (400 million barrels).
• India’s Safety Steps: To ensure Indian kitchens don’t run out of gas, the government has increased local LPG (cooking gas) production by 25% and tightened delivery rules to stop black marketing.

3. Why it Matters for UPSC

• Stagflation Risk: If oil prices stay high and the economy grows slowly, India could face Stagflation—a situation where things become very expensive while jobs grow slowly.
• International Law: Attacking peaceful merchant ships is a violation of UNCLOS (United Nations sea laws), which says ships have the right of “innocent passage” through international waters.

UPSC Value Box

With reference to global energy security and geography, consider the following statements:

1. The Strait of Hormuz is a strategic waterway that connects the Persian Gulf to the Gulf of Oman and the Arabian Sea.
2. Under the United Nations Convention on the Law of the Sea (UNCLOS), commercial ships have the right of “innocent passage” through international waters.
3. India is a full-time permanent member of the International Energy Agency (IEA).

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