Is the Strait Of Hormuz open? Iran & Trump's New Warnings; Reliance, ONGC, Other Oil & Gas Stocks In Focus

A new development has emerged regarding the Strait of Hormuz, where hundreds of ships are stranded due to the US-Israel and Iran war in the Middle East. On March 22, Iran's representative has reportedly announced that the Strait of Hormuz is open for all except ships that are linked with their enemies. In simple words, vessels that are linked to the US and Israel could still face difficulty. Following this, oil and gas stocks will be in focus on the Indian stock market on Monday, March 23.

Is Strait Of Hormuz open?

Iran's representatives told the UN maritime agency, on March 22, that the Strait of Hormuz remains open for all shipping vessels except those who are linked with 'Iran's enemies.'

Since the US-Israel launched coordinated airstrikes on Iran on February 28 which led to death of many Islamic Regime's leaders, Iran has hindered most ships from getting through the narrow chokepoint, Hormuz. Iran went as far as threatening to set fire to vessels that dared to pass through Hormuz.

Now, Ali Mousavi said Iran is ready to ‌cooperate ⁠with the International Maritime Organization for improving maritime safety and protect seafarers in the Gulf. He added that ships not linked to "Iran's enemies" are allowed to pass the strait ⁠by coordinating with security and safety arrangements of Tehran.

Mousavi added, "Diplomacy remains Iran's priority. However, a complete cessation of aggression as ⁠well as mutual trust and confidence are more important."

Further, the Iran representative blamed US and Israel to be the root cause of the shutdown of Hormuz.

US President Donald Trump Threatens Iran:

Iran's new statement comes after US President Donald Trump threatened Iran to open the Hormuz within 48 hours or they would target Iranian power plants.

Earlier, 22 countries had urged Iran to stop attacking Hormuz and reopen the passage. In a joint statement, the countries said, "We condemn in the strongest terms recent attacks by Iran on unarmed commercial vessels in the Gulf, attacks on civilian infrastructure including oil and gas installations, and the de facto closure of the Strait of Hormuz by Iranian forces."

These countries included the United Arab Emirates, Bahrain, the UK, Germany, France, Japan, South Korea and Australia among others.

In the early hours of March 22nd, Trump said, "If Iran doesn't FULLY OPEN, WITHOUT THREAT, the Strait of Hormuz, within 48 HOURS from this exact point in time, the United States of America will hit and obliterate their various POWER PLANTS, STARTING WITH THE BIGGEST ONE FIRST! Thank you for your attention to this matter. President DONALD J. TRUMP."

Why Indian Oil & Gas Stocks Will Be In Focus?

According to Elara Capital, the Middle East conflict shows few signs of de-escalation, intensifying Asia's energy crisis and global supply chain disruptions. Prolonged Strait of Hormuz (SOH) interruptions beyond mid-March, delayed energy supply normalization from affected producers, and persistent uncertainty could strain India's external sector, spilling over into the domestic economy and fiscal pressures.

Data from Kotak Institutional Equities said the Hormuz-accounted for ~41% of crude, 55% of LNG and 88% of LPG imports in 9MFY26-is vital to India's energy security.

Analysts at Kotak added, "The near-term focus will be to manage supply shortfalls and secure supplies. Crude/petrol/diesel risks are manageable with higher Russian imports and surplus refining capacity. LNG shortages are being addressed via allocation cuts to the industry. LPG is the key risk, with ~54% of supplies impacted and ~96% used for cooking purposes."

"With no retail pricing freedom, OMCs will have to absorb higher crude and freight/insurance costs. The negative public sentiment amid LPG shortages makes large petrol/diesel price hikes very difficult. OMCs have benefited from elevated marketing margins in the past few years. However, weak earnings are now set to erode the buffer created," said analysts.

However, Reliance Industries, ONGC and Oil India are likely to outrun the shocks of Hormuz shutdown as per many experts.

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