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India-Iran Hormuz Deal After US-Israel Strike

Bloomberg Markets •
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Five days after the US and Israel killed Iran's supreme leader, India's top Foreign Ministry bureaucrat visited the Islamic Republic's embassy in New Delhi. This diplomatic gesture of condolences from India to Iran appears to have cleared the way for a major deal on the Strait of Hormuz. The timing suggests India is positioning itself strategically amid escalating Middle East tensions.

India's outreach to Iran comes as the US-Israel operation has dramatically shifted regional dynamics. By sending a high-level envoy to express condolences, New Delhi may be signaling its desire to maintain economic ties with Tehran despite Western pressure. The Strait of Hormuz, through which roughly 20% of global oil shipments pass, represents a critical economic interest for energy-hungry India.

The diplomatic maneuver highlights India's delicate balancing act between its strategic partnership with the United States and its historical ties to Iran. India has previously been a major buyer of Iranian oil and has invested in Chabahar port as an alternative trade route bypassing Pakistan. This latest development suggests India is willing to engage with Iran even as the US-Israel operation has eliminated Iran's top leadership, potentially opening new opportunities for Indian businesses in a post-Ayatollah Iran.