Explained: How a tanker crash near Strait of Hormuz impacts oil and India

Two tankers caught fire after a collision in the early hours of June 17, 2025, near the Strait of Hormuz, one of the world's most critical energy trade routes, raising alarm in oil and shipping markets already on edge. The incident, reported by Bloomberg, involved the Adalynn, sailing under the Antigua and Barbuda flag, and the Front Eagle, a Liberian-flagged vessel owned by Frontline Plc.
The crash occurred 24 nautical miles east of Khor Fakkan, UAE. Satellite images confirmed the fire, but all 24 crew members aboard the Adalynn were safely rescued, according to the UAE's National Guard.
No foul play, but timing sparks concern
While both vessels caught fire, maritime security firms Vanguard Tech and Ambrey ruled out any hostile action. 'No foul play is suspected,' Vanguard stated, though investigations are still underway.
Initial reports triggered brief panic across Asian and Middle Eastern trading desks, with speculation about a link to the ongoing Israel-Iran conflict. Though analysts later clarified it was a navigational mishap, the sensitive location and tense geopolitical backdrop stoked fears.
Ambrey initially issued a 'war risk/sighting' alert but downgraded it to 'situational awareness' shortly thereafter. Frontline Plc said a full probe would follow, stressing the incident was not tied to regional military activity.
Adding to the confusion, Front Eagle had experienced GPS jamming near Iran's Assaluyeh days before the accident. While jamming has become more common amid rising tensions, experts confirmed that the crash occurred far from that interference zone.
Why is the Strait of Hormuz so critical?
The Strait of Hormuz is a narrow, 33-kilometre-wide maritime chokepoint between Oman and Iran. Despite its size, it facilitates over 20 per cent of the world's oil supply and nearly a fifth of all global LNG shipments, primarily from Qatar.
In 2024, average daily oil flows through the strait stood at 20 million barrels — about a quarter of all seaborne oil trade. Saudi Arabia accounted for the largest share, exporting 5.5 million barrels per day through Hormuz, or 38 per cent of its total traffic, according to Vortexa data.
With only three-kilometre-wide shipping lanes in each direction, the strait is extremely vulnerable to disruptions. Any blockage, whether intentional or accidental, can raise global oil prices, spike shipping costs, and slow critical supply chains.
What this means for India's oil security
India imports over 85 per cent of its crude oil and more than half its LNG from Gulf countries, making it heavily reliant on uninterrupted traffic through the Strait of Hormuz. In 2024, Qatar alone met 80 per cent of India's LNG requirements.
A disruption could affect as much as 40 per cent of India's crude intake, risking inflationary pressure and economic slowdown. A $10 increase in oil prices could widen India's current account deficit by 0.55 per cent of GDP and push inflation up by around 0.3 per cent, economists estimate.
Beyond oil, Hormuz is also crucial for India's exports to Gulf nations. Even temporary instability raises freight and marine insurance costs, hurting the competitiveness of Indian goods. To safeguard its interests, India continues naval deployments like Operation Sankalp to escort vessels and enhance maritime safety.
Israel-Iran tensions fuel fears of maritime fallout
With Israel and Iran trading direct drone and missile strikes since last week, fears are growing over a potential escalation at sea. Iran has previously threatened to block the Strait of Hormuz during times of conflict.
Although the recent fire appears unrelated to hostilities, the regional context cannot be ignored. Historically, flare-ups in this zone have spurred oil price surges and rerouting of cargo vessels. Insurance premiums often rise sharply, adding to trade and logistics costs.
For major importers like India, China, Japan, and South Korea, even perceived instability in Hormuz translates to real economic impact.

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

Time of India

6 hours ago

• Time of India

Israel security agencies warn people: Turn off your home security cameras or ...

Representative Image Iran is reportedly hacking into private security cameras across Israel to gather real-time intelligence on its adversary, highlighting a growing vulnerability in internet-connected devices amid escalating global conflicts, cybersecurity experts revealed this week. According to a report in Bloomberg, following a barrage of Iranian ballistic missiles that struck high-rise buildings in Tel Aviv, Refael Franco, former deputy director general of the Israel National Cyber Directorate , issued an urgent warning on public radio this week. 'Turn off your home surveillance cameras or change the password,' Franco urged, now leading cybersecurity firm Code Blue. 'In the past two or three days, the Iranians have been trying to connect to cameras to assess missile impact sites and improve their precision.' The Israel National Cyber Directorate is said to have confirmed the surge in cyberattacks targeting internet-connected cameras for Iran's war planning. 'We've seen attempts throughout the war, and those attempts are renewed now,' a spokesperson said Monday. While photos of missile impact sites circulate on social media, Israeli authorities have imposed an official blackout on such images. This tactic is not new. Gaby Portnoy, who recently stepped down as director of the Israel National Cyber Directorate, noted that Hamas previously exploited private cameras ahead of its October 7, 2023, invasion. 'The intelligence gathering from private cameras in the Gaza periphery was a disaster,' Portnoy said in an interview. 'Thousands of cameras, both public and private, were hacked over the years for intelligence collection.' Security cameras banned in Ukraine, US banned Chinese cameras by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Perdagangkan CFD Emas dengan Broker Tepercaya IC Markets Mendaftar Undo The issue extends beyond the Israel-Iran conflict. In Ukraine, Russia is reported to have similarly exploited private cameras near border crossings, military sites, and rail stations to track material movements, according to a May joint advisory by the US National Security Agency and Western intelligence agencies. Ukraine banned surveillance cameras in 2022 after warnings that Russia was using them to plan airstrikes, and in 2023, urged owners of street webcams to halt online broadcasts to prevent real-time missile strike adjustments. In the US, the Federal Communications Commission banned Chinese-made surveillance equipment in 2022 over national security concerns. The Israel-Iran cyberwar has intensified alongside physical attacks, with pro-Israel hacking group Predatory Sparrow claiming responsibility for disrupting a major Iranian bank and a cryptocurrency exchange. Iran's state-run IRIB News reported that Israel launched a full-scale cyberattack on the country's critical infrastructure. AI Masterclass for Students. Upskill Young Ones Today!– Join Now

Time of India

15 hours ago

• Time of India

How a fraudster in Dubai used ‘magic ink' to to pull off a fake bank loan scam

He used disappearing 'magic ink' to change cheque details after victims signed them/ Image: Dubai police Dubai Police have apprehended an Asian man who orchestrated a sophisticated scam involving the use of 'magic ink' to create fake bank documents and con victims under the guise of facilitating bank loans. According to an official statement by Dubai Police, the man posed as a legitimate banking professional and used fraudulent identification, including fake business cards and a fabricated job ID, to deceive individuals in need of financial services. Victims were led to believe that the fraudster had the ability to secure bank loans on their behalf. In return, they were asked to pay fees and provide signed documents. The scam came to light after multiple complaints were filed by victims, prompting an investigation by the Fraud Prevention Center, a specialized division within Dubai Police. Police detailed that the conman employed two distinct yet interconnected tactics to exploit his victims: Fake Account Opening Charges: The fraudster would first convince victims to sign documents related to supposed "account opening fees." These documents were presented as formalities necessary for securing the bank loan. Victims would pay upfront sums, believing these were standard banking procedures. Cheque Forgery Using Magic Ink: In the second stage, the scammer requested cheques from victims. He would fill out key cheque details, such as the payee name and amount, using 'magic ink', a special ink that disappears after a short time. Meanwhile, the victims would sign the cheques using a regular pen, unaware of the disappearing ink. Once the cheque details vanished, the fraudster would rewrite the cheques, inserting his own name and altering the amount. Armed with knowledge of the victims' bank balances, he manipulated the cheques for maximum financial gain. In their official advisory, Dubai Police urged the public to remain alert and cautious when engaging with anyone offering banking or financial services outside official channels. They emphasized several important safety measures: Do not deal with unofficial intermediaries claiming they can secure bank loans or services in exchange for money. Always verify the identity of financial representatives by checking their official company-issued IDs. Use your own pen when signing any financial documents, especially cheques. Contact the bank directly if there's any doubt about a representative's authenticity. Dubai Police reiterated that these precautions are vital in preventing such scams and protecting personal finances from exploitation. Authorities encouraged community members to promptly report any suspicious activity or cybercrime through the Dubai Police smart app or the eCrime platform. These tools are designed to enable quick and efficient responses to financial fraud, phishing, and other tech-enabled crimes. Dubai Police concluded by reaffirming their 'unwavering commitment to pursuing individuals who threaten community safety or attempt to take money from others unlawfully.'

Time of India

15 hours ago

• Time of India

Greek coast guard says over 600 migrants rescued from 2 fishing boats

AP image ATHENS: More than 600 migrants were rescued overnight and early Friday from two wooden fishing boats found sailing miles (kilometers) from the southernmost part of Greece, the country's coast guard said. The first fishing boat, carrying 352 people, was spotted overnight about 30 nautical miles (35 miles, 55 kilometers) south of the tiny island of Gavdos, the coast guard said. Passengers were rescued by a ship from the European border patrol agency FRONTEX, aided by a coast guard patrol boat and four other vessels. The second was found 50 nautical miles (about 60 miles, 90 kilometers) south of the island of Crete with 278 people on board. The passengers were picked up by a passing Portuguese-flagged cargo ship. In both cases, the migrants were transported to Crete. There was no immediate information on the nationalities of those on board the two fishing boats. Another two boats carrying migrants were located in the same area on Thursday, the coast guard said. One, carrying 73 men, was found south of Gavdos and another with 26 people, including one woman and three minors, was found near the coast of southern Crete. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Install the Perfect Pool at Home – Start Here Backyard Pool | Search Ads Learn More Undo The coast guard said those on the smaller boat told authorities they had set sail the previous evening from Tobruk in Libya, and had each paid smugglers either 4,000 euros ($5,500) for their passage to Greece. Two Sudanese teenagers, one aged 16 and the other 19, were arrested on suspicion of migrant smuggling after other passengers identified them as having been operating the boat. Greece has been on one of the preferred routes into the European Union for people fleeing war and poverty in the Middle East, Africa and Asia for decades. Arrivals from neighbouring Turkey to the east and the Libyan coast to the south spiked last year, with Greece recording more than 60,000 people arriving - the vast majority by sea - in 2024, compared to just over 48,000 the previous year, according to figures from the UN refugee agency. As of June 15 this year, a total of 16,290 arrivals were recorded, with more than 14,600 of those by sea. With authorities closely patrolling the eastern sea border with Turkey to prevent migrant boats reaching nearby Greek islands, smugglers appear to be increasingly opting for the much longer and riskier Mediterranean Sea crossing from the north African coast to the southern tip of Greece, using larger boats into which they can cram more people.