Energy
Iran Says Ships From India, China, Iraq and Qatar Are Exempt From Hormuz Limits, but the US Blockade and Attack Risk Cloud the Oil Impact
Image: MightyFineBros via Pixabay
A senior Iranian lawmaker's claim formalizes selective access to the strait; tanker-tracking data show who is already moving crude and LNG, and analysts see limited near-term effect on oil.
By Emmanuel Cruz ·
An Iranian lawmaker said this week that ships from India, China, Iraq and Qatar are exempt from Tehran's restrictions on the Strait of Hormuz, putting a public label on an arrangement that tanker data suggest has been developing for months. The statement came from Amir Hayat Moqaddam, deputy chairman of the Iranian parliament's National Security and Foreign Policy Committee, in an interview with the Iranian Students' News Agency on Tuesday. He said the vessels pass freely and that US forces do not intercept them [1].
According to the report, the exemptions come with different terms. India is to supply medicine, and Iranian authorities collect transit fees from Indian ships. China provides political backing and also pays fees. Qatar, which is mediating between Iran and Washington, provides diplomatic support and its vessels pass without charge. Hayat Moqaddam did not say whether Iraqi ships pay a toll [1]. The idea is not entirely new: Iran began letting vessels from friendly countries through within weeks of the war starting on February 28, and its military said in April that Iraq was exempt [1].
Shipping data from the analytics firm Kpler, cited by Al Jazeera, show how much oil is at stake. In October, 10.23 million barrels a day of Gulf crude passed through the strait, with about 42% going to China and 13% to India [1]. Iraq's transits rose from 1.69 million barrels a day in August to 2.65 million in October, while Qatar's crude transits fell from 517,000 to 193,000 barrels a day over the same period. Qatari liquefied natural gas, which did not move through the strait at all in August, totaled 1.8 million tonnes in October. Kpler said it could not trace up to 2 million barrels a day of Middle Eastern crude, so actual Iraqi and Qatari flows may be higher [1].
The exemptions do not remove the main obstacles. The US reimposed a naval blockade of Iran's southern ports in July, and US Central Command says it applies to all vessels of all nations entering or leaving Iranian coastal areas or ports, with humanitarian cargo allowed after inspection [1]. Whether Washington accepts Iran's selective approach is unclear, one analyst told Al Jazeera, and ending the blockade is among Tehran's demands before broader talks. Iran's proposal, so far rejected by President Donald Trump, calls for lifting the blockade, unfreezing assets and approving an Iranian-backed route through Hormuz, after which the waterway would reopen [2].
Safety remains a concern even for favored flags. A Qatari LNG carrier was struck by unidentified objects on October 30, and more than 120 commercial ships have been hit in the region since the war began, with October the worst month, according to IMO and UKMTO data cited in the report [1]. CBS News reported that the UK maritime agency counted 30 attacks on commercial vessels in October, a record, while US Central Command has said the primary transit routes are "free and clear" [3]. Brent crude fell 7.4% to $105.03 a barrel on November 2, according to CBS, and has ranged from roughly $70 to $120 since before the war [3].
Chris Beauchamp of IG Group said the exemptions make "only limited difference at present" to oil markets [1]. That view reflects the fact that the arrangement largely recognizes flows already under way and leaves most of the strait's traffic subject to the blockade and to attack risk.
Energy traders will watch three things next: whether the US responds to the exemptions with enforcement or tacit acceptance, whether Qatar's mediation yields a formal reply on Iran's seven-day proposal, and whether attacks on tankers continue at October's pace. Any of those could move crude and LNG prices when trading resumes on Monday.
Sources:
[1] Al Jazeera, "Why is Iran exempting India, China, Qatar, Iraq from Hormuz restrictions?", November 6, 2026. https://www.aljazeera.com/amp/news/2026/11/6/why-is-iran-exempting-india-china-qatar-iraq-from-hormuz-restrictions
[2] The National, "Iran's Araghchi says he held talks with 12 foreign ministers to defuse tensions", November 7, 2026. https://www.thenationalnews.com/news/mena/2026/11/07/irans-araghchi-holds-talks-with-12-foreign-ministers-to-defuse-tensions/
[3] CBS News, "Iran plays down hope for deal to end war after new U.S. strikes on eve of midterm elections", November 3, 2026. https://www.cbsnews.com/live-updates/iran-war-us-trump-negotiations-midterms/
This article was produced with AI assistance. It is for informational purposes only and is not financial advice. StockVolt and its authors may hold positions in securities mentioned.