On the evening of April 7, local time in Washington, D.C., the international community welcomed a conditional two-week ceasefire between Iran and the U.S., which restores limited passage through the Strait of Hormuz — the key transit point for roughly 20 percent of global oil and liquified natural gas shipments.

Shipping volume through the strait declined significantly following the outbreak of hostilities between the U.S., Israel, and Iran on February 28, which in turn contributed to soaring oil prices. Following the announcement of the “re-opening” of the strait, Brent crude — the international benchmark for oil prices — fell by 15.5 percent to $92.28 a barrel, the biggest one-day drop since April 2020, when the COVID-19 pandemic began.

India’s Ministry of External Affairs (MEA) issued a statement welcoming the ceasefire while reiterating New Delhi’s expectation that “unimpeded freedom of navigation and global flow of commerce” would prevail through the Strait of Hormuz. For a country heavily dependent on oil imports from countries in the Persian Gulf, with ships crossing the strait to enter the Arabian Sea to reach India, free, open and secure sea lanes of communication are an existential necessity. A ceasefire, albeit transitional, could provide temporary relief to Indian consumers through stabilizing energy prices and supply chain disruptions. Reopening of the strait is good news, especially for the 16 Indian vessels still stuck in the Persian Gulf.

However, India’s energy supply woes stemming from high oil import dependence are far from over. Lingering uncertainty over the durability of the ceasefire and lack of clarity on the terms and conditions for transit imposed by Iranian authorities have led to an interesting paradox. In the first 24 hours of the ceasefire announcement, according to global ship-tracking firm Kepler, no oil or gas tankers have passed through the strait. Only four dry cargo ships passed through the strait, down from a daily average of ten the week before, when fighting was on in full force, dimming hopes for immediate respite for the stranded Indian ships and seafarers.

At the diplomatic level, India is among the few countries that have directly engaged with Iran to ensure the safe passage of its vessels through the Strait of Hormuz amidst ongoing hostilities. At least 8 Indian flagged ships have crossed the strait since February 28, through close coordination with Iranian authorities and support from Indian Navy ships. Foreign Minister S. Jaishankar has clarified that India has no “blanket agreement” with Iran to secure safe passage for the ships, and that ship movement was being addressed on a “case-by-case” basis.

Meanwhile, Tehran has on multiple occasions indicated that the strait was open to “friendly nations,” including India. Notably, this coincides with New Delhi’s decision to purchase Iranian oil, its first since May 2019 when it halted oil trade due to U.S. sanctions pressure. Amidst reports suggesting that some vessels are paying as much as $2 million to cross the waterway without coming under fire, the MEA has dismissed allegations that New Delhi made payments in yuan to secure this access. Jaishankar has repeatedly attributed India’s “relationship” with Tehran as the reason for New Delhi securing access through the contested waters, with Iran receiving “nothing in exchange.”

So far, bilateral engagement has served India’s immediate interest of ensuring safe ship passage, but with Iran now formally proposing “continued Iranian control over the Strait of Hormuz” as part of its ceasefire condition — which reportedly includes a roughly $2 million toll on every container ship passing through the strait — puts New Delhi in a tricky position. Such a toll is a violation of the United Nations Convention on the Law of the Sea (UNCLOS) maritime convention governing international sea law, which says states bordering straits (unlike canals) cannot demand payment simply for permission to pass through, although they can impose limited fees on ships for specific services such as piloting, tugging or port services.

New Delhi, which has consistently supported UNCLOS, will be forced to look at how it can continue negotiating with Tehran without compromising its commitment to UNCLOS, especially if Tehran refuses to budge from its position.

To New Delhi’s credit, this commitment was displayed when Foreign Secretary Vikram Misri participated in the U.K.-hosted meeting on the Strait of Hormuz, which acknowledged that Iran’s closure of the Strait of Hormuz is a direct threat to global prosperity. In his remarks, Misri reiterated the importance of the principles of freedom of navigation and unimpeded transit through international waterways and highlighted that “the way out of the crisis consisted of de-escalation and a return to the path of diplomacy and dialogue among all concerned parties.”

So far, Indian officials have refrained from publicly commenting on the specific question of Iran imposing tolls. According to some Indian media outlets citing government sources, India is not in favor of the idea. Singapore is among the few Asian countries that have publicly said that it will not negotiate with Iran for safe passage through the Strait of Hormuz, stressing that transit through such waterways is a right, not a privilege.

Amidst all the uncertainty surrounding the ongoing conflict in West Asia, one thing is amply clear—a return to the pre-war status quo in the Strait of Hormuz is becoming increasingly unlikely. With the April 7 United Nations Security Council resolution submitted by Bahrain—which encouraged states to “coordinate efforts defensively, to contribute to ensuring the safety and security of navigation there, including the use of escorts for merchant and commercial vessels”—vetoed by Russia and China, the option of a UN- mandated naval coalition to open the strait remains suspended, at least for the time being.

New Delhi — in the words of U.S. President Donald Trump — will be forced to “fend for itself” to ensure a permanent solution to secure passage of its ships through the contested waterways.