A second ship attack in two months involving an Indian vessel has intensified the crisis in the Strait of Hormuz, threatening to further disrupt global energy flows.
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Indian ship sinks near Strait of Hormuz as 14 crew rescued
An Indian-flagged cargo ship with 14 crew sank off the coast of Oman on Wednesday after a suspected missile attack, authorities said, while a second vessel was seized near the United Arab Emirates, escalating tensions in a waterway that handles a fifth of the world's oil.
"The attack on an Indian-flagged ship off the coast of Oman yesterday is unacceptable, and we deplore the fact that commercial shipping and civilian mariners continue to be targeted," India's foreign ministry said in a statement Thursday, confirming all 14 crew members were rescued.
The cargo vessel, identified by maritime security firm Vanguard as the MSV Haji Ali, was transporting livestock from Somalia to Sharjah in the UAE when an explosion caused a fire, forcing the crew to abandon ship before it sank. The United Kingdom Maritime Trade Operations center also reported a separate incident Thursday where a vessel was seized by unauthorized personnel 38 nautical miles off the UAE port of Fujairah and was heading toward Iranian waters.
The incidents amplify risks for commercial shipping in the Gulf, particularly around the Strait of Hormuz, which Iran has largely controlled since the outbreak of war with the United States and Israel. Continued disruptions threaten to drive further volatility in oil and gas markets, increasing pressure on major energy importers like India.
Iran Asserts Control Amid Diplomatic Talks
The attacks occurred as India hosted foreign ministers from the BRICS bloc, including Iran's Deputy Foreign Minister Abbas Araghchi. While Araghchi made no direct mention of the attack, he insisted the Strait of Hormuz "is open for all" commercial vessels that "cooperate" with its navy. This follows reports that Iran has begun granting selective passage to some vessels, with two India-bound LPG tankers, the Symi and NV Sunshine, transiting the strait in the last 24 hours after a nearly two-week halt.
Tehran has defended its right to seize ships linked to the US, with a judiciary spokesperson telling state media Iran has the legal right to do so. Iran's senior vice president, Mohammadreza Aref, reiterated that the strait "has always been our property" and would not be given up "at any price." This is at least the third Indian-flagged or linked ship to be attacked since the conflict began on February 28, prompting India to summon the Iranian envoy last month to express "deep concern."
Wider Geopolitical Implications
The escalation comes at a tense diplomatic moment. The White House stated that during a visit to Beijing, U.S. President Donald Trump and Chinese leader Xi Jinping agreed the Strait of Hormuz must remain open. Shortly after, Iranian media reported that Chinese vessels began passing through the strait under new Iranian protocols following requests from Beijing.
Adding another layer of complexity, Israeli Prime Minister Benjamin Netanyahu announced a recent quiet visit to the UAE, a claim the UAE denied. The 2020 normalization of relations between the two countries has been a point of contention for Iran. Yoel Guzansky, a senior researcher at the Institute of National Security Studies in Tel Aviv, noted the deep security cooperation between Israel and the UAE against Iran shows "how complicated the Middle East is."
This article is for informational purposes only and does not constitute investment advice.
[1] Indian-flagged ship sunk in Strait of Hormuz this week, crew rescued[2] India says attack that sank Indian-flagged ship off Oman's coast 'unacceptable'[3] Ship is reported seized off the coast of the UAE and is heading toward Iran[4] Escalation in Strait of Hormuz as ship seized and another sinks[5] Strait of Hormuz today: Two Gujarat-bound ships transit through waterway amid Iranian FM’s India visit
