Crude prices surged 13% to $82 per barrel as tensions around the Strait of Hormuz escalated, disrupting nearly a third of global seaborne oil flows. The narrow passage between Iran and the Gulf has become the epicenter of supply anxiety after naval restrictions and tanker incidents heightened fears of prolonged disruption. Energy exporters including Saudi Arabia, United Arab Emirates, Kuwait, Qatar, and Oman rely heavily on this corridor, amplifying global market volatility. For India, the economic stakes are significant. Bilateral trade with Iran stands at approximately ₹14,245 crore, with exports forming the larger share. Although India had curtailed Iranian oil imports following U.S. sanctions in recent years, broader trade ties and strategic infrastructure projects such as Chabahar Port remain geopolitically sensitive. Diplomatically, Prime Minister Narendra Modi has engaged with Israeli Prime Minister Benjamin Netanyahu and UAE President Mohamed bin Zayed Al Nahyan, signaling a calibrated approach. Analysts say India is balancing strategic partnerships while avoiding overt alignment, as energy security and regional stability dominate policy calculations.
