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India's Iran Diplomacy Aims to Reopen Strait of Hormuz

Financial Times Markets •
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India's foreign minister S Jaishankar has touted direct negotiations with Iran as the most effective path to reopening the Strait of Hormuz, after Donald Trump called for military intervention. Jaishankar told the FT that talks between New Delhi and Tehran allowed two Indian-flagged gas tankers to pass through the critical waterway on Saturday.

Energy prices have surged above $100 per barrel for the first time since August 2022, forcing governments to weigh diplomatic outreach against military involvement. France and Italy have joined India in opening talks with Tehran about restarting energy shipments. Iran's foreign minister Abbas Araghchi told CBS that Tehran is "open" to discussions about safe passage for vessels.

The diplomatic push comes as the US temporarily relaxed sanctions on Russian oil to mitigate price spikes. With energy markets in turmoil, India's approach of direct engagement with Iran represents a pragmatic alternative to military escalation, potentially offering a template for other nations grappling with supply disruptions.