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Iran exempts Indian ships from Strait of Hormuz curbs

5 Nov 2026•3 min read

By the PH Logistics India trade desk · How we write these

Iran announced that vessels from India, along with China, Iraq and Qatar, are exempted from its transit restrictions in the Strait of Hormuz. The exemption was disclosed by deputy chairman Amir Hayat Moqaddam of Iran’s parliament. This move could ease the flow of Indian energy imports and create a channel for Indian medicines to reach Iran.

Key facts

  • Iran exempted Indian ships from Strait of Hormuz transit restrictions.
  • Exemption announced by Amir Hayat Moqaddam, deputy chairman of Iran’s National Security and Foreign Policy Committee.
  • Ships from the four exempted countries can pass freely without American interception.
  • Iran seeks essential medicines from India, linking the exemption to its pharmaceutical needs.
  • Before the 2026 conflict, about 45% of India’s crude oil and nearly 90% of LPG imports used the strait.

Why the Strait of Hormuz matters to India

The Strait of Hormuz connects the Persian Gulf with the Gulf of Oman and the Arabian Sea, serving as a key maritime chokepoint for global oil and gas shipments. For India, it carries a large share of crude oil, LPG and LNG imports, making it a critical energy lifeline.

Since February 28, 2026, the region has seen heightened tension after US and Israeli military actions against Iran, a ceasefire in April, and renewed fighting in July. Iran has used access to the strait as diplomatic leverage, restricting vessels from most countries while granting exemptions to a select few.

The recent exemption for Indian vessels is driven partly by Iran’s need for essential medicines, which India can supply in large volumes, and by political calculations to maintain support from key partners.

What this means for exporters and importers in Punjab

Importers of crude oil, LPG and LNG in Punjab and the wider North Indian region can expect smoother transit through the strait, reducing the risk of delays or additional insurance costs that have risen during the conflict.

Pharmaceutical manufacturers in the Tricity area (Chandigarh and Mohali) now have a clearer route to ship medicines to Iran, potentially expanding export markets and improving cash flow if they pursue Iranian buyers.

While the exemption eases immediate shipping concerns, exporters and importers should stay alert to any future changes in Iran’s policy, as the arrangement remains linked to diplomatic and economic considerations.

Chandigarh & Mohali – The Tricity’s pharma and engineering firms can leverage the exemption to ship medical products to Iran, aligning with Iran’s expressed need for essential medicines.

What you can do now

  • Review current pharma export plans to Iran and identify potential buyers, ensuring compliance with Indian export regulations.
  • Coordinate with your freight forwarder to confirm vessel routing through the Strait of Hormuz and verify that insurance policies cover the passage.
  • Discuss with energy suppliers how the exemption may affect freight rates and delivery reliability for oil, LPG and LNG shipments.
  • Prepare documentation for any future changes in Iranian transit rules, keeping contact details of Iranian import partners up to date.

Further reading