India protests Iran fire on two vessels in Strait of Hormuz

New Delhi summoned Iran's envoy after two India-flagged vessels were attacked while attempting to cross the Strait of Hormuz. DW has the latest.

India summoned Iran's envoy after two India-flagged vessels were attacked while attempting to cross the Strait of Hormuz. The vessels were identified as the MT Desh Vaibhav and the MT Akhil, both of which are owned by the Indian shipping company, Shipping Corporation of India. The attack occurred on August 12, resulting in damage to both ships, with estimated repair costs totaling over $1 million. Iran's ambassador to India, Ali Chegeni, was summoned to the Indian Ministry of External Affairs to discuss the incident.

This attack could lead to a spike in oil prices, affecting the cost of gasoline and diesel fuel for consumers. As a result, the price of fuel may increase by as much as 5% in the coming weeks, directly impacting households that rely on fuel for transportation and other daily needs. The increased cost of fuel would also affect businesses that rely on fuel for transportation, leading to potential price increases for goods and services. This could have a significant impact on the economy, particularly for low-income households.

The Strait of Hormuz is a critical waterway for international oil trade, with over 20% of the world's oil passing through it. Tensions in the region have been escalating in recent months, with multiple incidents of ships being attacked or seized. Insiders know that the region's instability is largely driven by the ongoing conflict between Iran and the United States, which has led to increased military presence in the area. This has created a volatile situation, with multiple countries vying for influence and control.

The Indian government is expected to release a formal statement on the incident by the end of the week, which may include details on the extent of the damage and any potential retaliation. The Shipping Corporation of India is also expected to announce plans for the repair and recovery of the damaged vessels. Interestingly, despite the tensions in the region, Iran and India have historically enjoyed strong economic ties, with Iran being one of India's largest oil suppliers, and it remains to be seen how this incident will affect their relationship.