Jun 15, 2026 09:55 am IST

Opinion | Hormuz Is Reopening, But It May Never Matter Quite The Same Way Again

Hormuz may never carry the traffic it had prior to the war, and its significance for global supply chains may be diminished, to an extent. Here's why

Aditi Bhaduri Aditi Bhaduri Columnist

Aditi Bhaduri Columnist

US President Donald Trump recently announced that the US and Iran had reached a deal and that the Strait of Hormuz would be reopened soon. Coming over three months after the war started, however, many countries have by now explored alternate pathways to keep their economies running and to hedge against future disruptions. 

The India-Omani Partnership

India has been one of the worst hit countries by this war, in particular by the closure of the Strait of Hormuz, as much of her energy imports from the Middle East transit through this critical waterway. While oil and gas are the most important, there are other major imports, like fertilizers, that also transit through Hormuz. Recently, Union Petroleum Minister Hardeep Singh Puri, revealed that India's oil marketing companies were losing Rs. 16,000 crore a day, something the recent fuel price hikes aim to address, to an extent. The rupee has fallen to a historical low to touch 95 to the dollar. Amidst these shocks, the news that the India-Omani Comprehensive Economic Partnership Agreement (CEPA) has been actualised was met with much glee. 

CEPA paves the way for more buoyant trade with the Oman Sultanate, especially facilitating Indian exports - a critical need for the economy currently. Most importantly, the location of Oman is significant now with all the tension around the Strait of Hormuz. Oman is located outside the Strait, directly on the Arabian Sea and the Gulf of Oman, and thus, goods can enter and exit its ports of Salalah and Duqm easily without having to go through Hormuz. Moreover, India also had a historical presence at Duqm. India's imports from Oman actually increased by 246.4%, rising from USD 430 million to nearly USD 1.5 billion, driven by higher purchases of crude oil and urea. The countries are now seeking to reactivate the proposal for the Rs.40,000-crore Oman-Gujarat deep-sea gas pipeline. The 2,000-km subsea project would bypass the Strait of Hormuz, offering a potentially safer and more direct route for natural gas imports, hedging against any similar disruptions........

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