The strait of Hormuz plays a vital geopolitical role to the point where the US Fifth Fleet guards this strait. But during the recent days, Iran has threatened the safe passage of oil tankers in this strait in response to the crippling unilateral sanctions placed on its economy by the Trump Administration.
Recently, Indian firm “India Ports Global Limited” took over operations at the Shahid Behesti Port in Chabahar, Iran. The representative of India, Iran, and Afghanistan met and finalized the routes for trade and transit corridors between the three nations. An event has also been planned on February 26, 2019, to promote and popularise the potential of Chabahar port.
The United States has broadly agreed to grant India and 7 other countries a waiver from the sanctions it re-imposed on Iran recently. This decision provides some temporary relief to India and avoids any major oil price shocks.