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Modi Middle East Stance Signals India's Delicate Balance Amid US-Iran Tensions

Bloomberg Markets •
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Indian Prime Minister Narendra Modi condemned military conflict in the Middle East and Ukraine during talks with Finland's President Stubb, just days after the US sank an Iranian warship near Sri Lanka. Modi stated 'dialog and diplomacy' are the only sustainable paths to resolving disputes, avoiding direct condemnation of the US-Israeli attack despite India's historical ties with Iran. This rare public comment reflects New Delhi's precarious balancing act between Tehran and Washington, complicated by recent punitive tariffs and a new trade deal.

India's heavy reliance on Iranian oil and energy shipments through the Strait of Hormuz makes it particularly vulnerable to regional escalation. The 50% US tariffs on Indian exports last year and subsequent trade deal reduction further strained relations, pushing Modi to strengthen ties with Europe. Finland's visit underscores this pivot, with both nations agreeing to double bilateral trade and deepen cooperation in clean energy and technology. Modi's measured approach contrasts with opposition criticism, while Stubb praised his 'pragmatic and realistic world view' and highlighted India's need for a UN Security Council seat. The Finnish leader's four-day visit carries added weight as he remains one of Trump's few trusted European contacts.