India resumes energy trade with Iran | DW News

Key Concepts

• Strait of Hormuz: A critical maritime chokepoint for global energy supplies, particularly for India’s crude oil and Liquefied Petroleum Gas (LPG) imports.
• Strategic Autonomy: India’s foreign policy approach of maintaining independent relations with all belligerents (US, Israel, Iran, GCC) to prioritize national interests over bloc alignment.
• Energy Security: The primary driver of India’s geopolitical calculus, necessitating the diversification of oil and gas sources.
• Diaspora Security: The protection of the 9–10 million Indian citizens residing in Gulf states.
• "Cleft Stick" Diplomacy: The challenging position of balancing competing demands from global powers while maintaining bilateral ties with Iran.

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1. Impact of the Iran War on India

The conflict in the Strait of Hormuz significantly disrupted India’s energy supply chain. Approximately 60% of India’s LPG imports pass through this waterway. The blockade forced India to scramble to expand its energy base, leading to imports from over 40 countries.

• Energy Diversification: India has resumed Iranian crude imports (the first since 2019) and is actively expanding energy trade with Russia, including potential restarts of Liquefied Natural Gas (LNG) imports.
• Aviation and Security: The conflict impacted primary aviation routes to Europe and the West. Furthermore, the safety of the Indian diaspora became a critical concern after three Indian citizens were killed by stray projectiles in the Persian Gulf.

2. India’s Geopolitical Strategy

India has avoided formally picking a side, instead pursuing a policy of "picking its own side."

• Independent Engagement: India rejected US pressure to join the Hormuz Naval Coalition, opting instead for bilateral engagement with Iran to ensure the safe passage of its vessels.
• Diplomatic Balancing: India maintains close ties with the US, Israel, and Iran simultaneously. It uses these relationships to urge all parties to recognize their shared responsibility in ending the conflict.
• Even-handed Condemnation: While India has condemned Iranian strikes on Gulf oil fields, it has also expressed disapproval of US and Israeli strikes on Iranian infrastructure. Notable examples include Prime Minister Modi’s direct communication with President Masoud Pezeshkian and Foreign Secretary Vikram Mishri’s visit to the Iranian embassy to sign a condolence register following a US strike on a school in Minab.

3. The Russia-India Energy Relationship

Despite pressure from the US administration, India has maintained and deepened its energy ties with Russia.

• Continuity: India’s reliance on Russian oil has increased since 2022. Even during periods of tension with the US, India continued these imports.
• High-Level Diplomacy: The relationship was reinforced by President Vladimir Putin’s visit to New Delhi in December 2025 and the recent visit of Russia’s First Deputy Prime Minister, Denis Manturov, who met with India’s top leadership, including the Prime Minister and the National Security Adviser.

4. Public Sentiment and Economic Impact

The Indian public’s perspective is driven primarily by domestic economic stability.

• Cost of Living: The war directly affected the cost of electricity and food prices for the average Indian citizen.
• Desire for Peace: There is strong public support for the two-week ceasefire, as it is viewed as essential for stabilizing energy prices, which had already begun to show signs of recovery by the middle of the previous month.

5. Notable Quotes

• On India’s strategic position: "India certainly been affected in the energy sector... it’s certainly been a major consideration within Indian decision-making and broadly within India’s strategic calculus." — Archishman Ray Guswami
• On the "cleft stick" dilemma: "India has essentially tried to do over the course of this war is rather than picking a side, it’s tried to use its close relations with each of these countries to bring to individually reiterate to them the shared responsibility they hold." — Archishman Ray Guswami

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Synthesis

India’s response to the Iran war highlights a pragmatic, interest-based foreign policy. By prioritizing energy security and the safety of its diaspora, India successfully navigated the conflict without aligning with any single power bloc. The country’s ability to maintain deep energy ties with Russia while simultaneously engaging with the US and Iran demonstrates a commitment to strategic autonomy. The ultimate takeaway is that for India, the geopolitical calculus is inextricably linked to domestic economic stability, making the recent ceasefire a welcome development for the nation’s energy and financial security.