The recent escalation of the US-Iran conflict has turned the critical Strait of Hormuz into a combat zone, directly endangering the lives of thousands of Indian seafarers who form the backbone of the shipping industry. This situation has exposed the precarious position of Indian maritime workers, who often operate on foreign-flagged vessels directly in harm's way.
Recent Attacks on Vessels with Indian Crew
Recently, multiple commercial vessels with Indian crew members have been targeted. On 10 June, the Palau-flagged oil tanker MT Settebello was struck by US forces. Three Indian sailors were killed and 21 others were rescued. On 8 June, MT Marivex, again a Palau-flagged vessel, was disabled by US action with 24 Indian crew members aboard; these were rescued by Oman. Similarly, MT Jalveer was struck on 11 June. This Guinea-flagged vessel had all 20 crew members from India.
India's Role in Global Seafaring
India is the world's third-largest supplier of seafarers, accounting for roughly ten per cent of the global workforce. For Indian seafarers, these jobs offer unmatched financial opportunities. As of 2025, there are over 500,000 registered seafarers in India. Almost 320,000 are actively deployed at sea at any given time. Over 18,000 Indian seafarers are currently estimated to be in the high-risk Gulf region alone.
Understanding 'Flag of Convenience'
Let us understand the role of the 'Flag of Convenience'. This is when a ship is registered in a foreign country to reduce operating costs and avoid stricter regulations in the owner's home nation. This allows vessels to quickly obtain a flag from anywhere in the world, often within just 3–4 days, and operate with far less regulatory oversight. These flags, often from nations like Palau, Guinea, or Panama, can make ships exempt from the diplomatic protection of the owner's home country.
The vessels attacked this week illustrate this very system. They were Palau-flagged and Guinea-flagged, and none were Indian-owned despite having Indian crews. For a Pacific island nation with a GDP of around $320 million and a population of roughly 18,000 people, Palau does not physically operate large commercial ships in the traditional sense. Instead, it operates a 'flags of convenience' (FOC) registry. Palau's role is entirely administrative and regulatory. In 2023, the International Transport Workers' Federation (ITF) ranked Palau as one of the four worst flag states for its treatment of seafarers. It recorded the second-highest number of ship abandonments in the world, where crews are left stranded without pay or support.
India's Diplomatic Stance
When the Indian public raised the issue of US attacks on Indian ships, the answer was twisted by Ministry of External Affairs (MEA) spokesperson Randhir Jaiswal. India's diplomatic stance was carefully worded. The MEA emphasised that the targeted ships were foreign-flagged and not Indian-owned. This assertion serves a critical diplomatic purpose. By stating these are private commercial vessels not operating under Indian ownership, the government draws a legal and political distinction between the ships' operations and the Indian state. This approach is designed to prevent India from being drawn into the escalating conflict, allowing it to protest the endangerment of its citizens while not endorsing the nature of the ships' business, such as potentially violating sanctions.
Why is the US Targeting These Ships?
If none of the three ships struck by the US were carrying oil bound for India at the time of the attacks, why is the US hitting them? The US is sending a strong message to India that its covert operation of violating sanctions will not be tolerated anymore. Based on publicly available information, over the past three years, at least 119 vessels and oil tankers have drawn attention due to suspected business, ownership, or management links to India in connection with US sanctions. The vessels that have come under sanctions are primarily targeted because of their direct association with India through ownership, operation, or management. Most of these ships operate as part of a 'shadow fleet' transporting oil for sanctioned countries, frequently changing names and flags to evade detection.
Categories of Indian Shadow Fleet
There are three categories of the Indian shadow fleet: Indian-registered entities, vessels registered overseas but linked to Indian nationals or companies, and ships that employ large numbers of Indian crew members and have been targeted for sanctions violations. Some Indian entities have been specifically designated by the US Office of Foreign Assets Control (OFAC), meaning their assets are frozen and transactions with US persons are prohibited. Others are vessels registered in countries like Panama or Liberia but with beneficial owners who are Indian nationals. In September 2025, a network of 30 oil tankers managed by an Indian national based in the UAE was sanctioned. These data indicate that Indian companies and individuals are deeply embedded in the global 'shadow shipping' network, and the US is continuously using sanctions to cut off funding channels for sanctioned regimes.
Role of Major Players Like Adani
Modi's friend Adani is the biggest player in this field. Adani Ports and Special Economic Zone Ltd (APSEZ) is India's largest private port operator. Adani, directly or indirectly, holds a 40 to 60 per cent share of ports and container handling in India and has overseas holdings in Israel, Singapore, Tanzania, and Sri Lanka. Is the Adani Group part of this 'shadow fleet' business? It's difficult to comment.
Broader Implications
In a nutshell, India is involved in a dubious business of hoodwinking the international community by running a criminal enterprise. There is a likely role of big tycoons like Adani in this criminal enterprise; there have been reports of narcotics trafficking through Adani's Mundra port as well. There may be a role of Indian foreign intelligence, R&AW, in misusing these networks for spying and sabotage against friends and foes. The US has used legal sanctions against Indian dubious trade; now it wants to send a clear message: kinetic action. This is unprecedented.
The meek response by the Indian government and leadership is not surprising. Modi and Jaishankar are mum, people are crying, and the opposition is asking questions. Apparently, the Indian government has no respect for human lives. This is how a thief hides when caught. Modi knows that more discussion on the subject would expose the entire criminal enterprise and its possible links with Adani; he cannot afford the political cost.
Adeela Naureen and Waqar K Kauravi
The authors are freelance journalists. They can be reached at adeelanaureen@gmail.com and waqarkauravi@gmail.com
