Iran is reportedly set to allow India-flagged tankers to pass through the Strait of Hormuz, a vital route for 40% of India’s oil imports.

However, an Iranian source outside the country denied that such an agreement has been reached. The Indian Ministry of External Affairs and the Iranian Embassy in New Delhi have not yet commented, The Caspian Post reports via foreign media.

Tensions in the strait have escalated recently. On March 11, a Thai tanker heading to Kandla Port was attacked, prompting strong criticism from New Delhi. “India condemns the targeting of commercial vessels amid the ongoing conflict in West Asia,” the ministry said.

Since the start of the US- and Israel-led campaign against Iran in late February, Tehran has reportedly attacked at least 16 ships passing through the Strait of Hormuz and warned that oil prices could spike to $200 per barrel, nearly double the current level.

Earlier, Indian Minister of External Affairs Subrahmanyam Jaishankar had a phone talk with his Iranian counterpart Abbas Araghchi to discuss maritime security in the strait.

With the route effectively blocked, India - the world’s third-largest oil consumer - is exploring alternatives, including increasing crude imports from Russia.