The escalating conflict involving Iran, Israel and the United States has placed India in a difficult diplomatic and economic position. Military strikes, retaliatory missile attacks and disruptions in the Strait of Hormuz have not only shaken regional stability but also threatened global energy flows. For a country like India—deeply connected to the Gulf through trade, energy imports and a large expatriate population—the stakes are particularly high.
Yet the current crisis also highlights a deeper reality: India’s foreign policy and strategic planning are resilient enough to manage both the diplomatic tensions surrounding Iran and the energy disruptions affecting LPG supplies. New Delhi’s cautious diplomatic posture and its domestic energy management measures suggest a deliberate effort to balance geopolitical pressures with national interests.
Rather than signalling weakness or indecision, India’s approach reflects a pragmatic strategy designed to protect citizens, secure energy supplies and maintain working relations with multiple powers in a volatile region.
A Carefully Calibrated Diplomatic Response
India’s response to the recent escalation in West Asia has been notably cautious. When the United States and Israel launched strikes on Iran on February 28 amid tensions over Tehran’s nuclear programme, several countries quickly issued strong statements either condemning or supporting the action. India, however, avoided taking a direct position against Iran.
Even after the death of Iran’s Supreme Leader Ayatollah Ali Khamenei in the strikes was confirmed on March 1, New Delhi refrained from openly condemning the killing. Instead, the government expressed condolences days later through diplomatic channels.
Public statements from the Indian leadership largely focused on calls for de-escalation and respect for the sovereignty of Gulf nations that were affected by retaliatory strikes. The emphasis remained on stability and restraint rather than assigning blame.
At first glance, such restraint may appear unusual given India’s historically close ties with Iran. However, the approach reflects a deliberate balancing act. India maintains strong strategic relations with the United States and growing defence and technology cooperation with Israel, while also preserving long-standing economic and cultural links with Iran and the broader West Asian region.
In an increasingly polarised geopolitical environment, India’s diplomatic strategy appears to prioritise flexibility rather than alignment with any single bloc.
The Weight Of History In India–Iran Relations
India’s careful tone toward Iran is particularly notable because the two countries share a long history of engagement. Their civilisational links go back centuries, shaping cultural exchanges, trade and political cooperation.
Modern diplomatic relations were formalised through a Friendship Treaty in 1950. Over the decades, India and Iran built strong ties in trade, energy cooperation and regional connectivity.
The relationship deepened during the early 2000s when India and Iran signed strategic agreements aimed at strengthening political and economic cooperation. Later, under Prime Minister Narendra Modi, the partnership gained renewed momentum. His visit to Iran in 2016 produced several agreements, including a trilateral transit arrangement involving Afghanistan centred on the development of Chabahar Port. The project was seen as a critical gateway for India’s access to Central Asia.
High-level engagement continued when Iranian President Hassan Rouhani visited India in 2018, further strengthening cooperation in connectivity and trade.
Against this historical backdrop, India’s restrained reaction to the latest crisis has attracted attention. However, it does not necessarily indicate a breakdown in ties. Instead, it reflects the complexity of India’s diplomatic priorities in a region where its interests intersect with multiple competing powers.
The Strategic Importance Of West Asia For India
India’s cautious diplomacy is also shaped by the enormous strategic importance of West Asia to its economy and society.
One of the most significant factors is the presence of a large Indian diaspora across Gulf countries. More than one crore Indians live and work in the region, making their safety a key priority for the government whenever tensions escalate.
Energy dependence further amplifies the stakes. India imports a substantial share of its oil, liquefied petroleum gas (LPG) and liquefied natural gas (LNG) from West Asia. In 2025 alone, the country sourced around $70 billion worth of crude oil and petroleum products from the region.
LNG imports from West Asia accounted for approximately 68.4 per cent of India’s total LNG purchases, valued at about $9.2 billion. LPG imports were even more significant, with nearly $13.9 billion—almost 47 per cent of India’s total LPG imports—coming from the region.
Such dependence means any disruption in the Strait of Hormuz, through which a large portion of global oil and gas shipments pass, can quickly affect India’s energy supply chain.
LPG Disruptions And The Domestic Response
The ongoing conflict has already begun affecting energy shipments across the Gulf, leading to disruptions in supplies of crude oil, LPG and LNG.
India, where about 333 million households rely on LPG cylinders for cooking, has seen rising concerns about shortages. Panic buying pushed daily booking requests to around 7.6 million, compared with roughly 5.5 million earlier in the month.
In response, the government has asked consumers to avoid panic buying and encouraged households with access to piped natural gas to temporarily switch from LPG cylinders. Officials estimate that around six million households using LPG could easily transition to piped gas, easing pressure on supply.
Authorities have also increased monitoring to prevent black marketing and hoarding of LPG cylinders. At the same time, domestic refineries have been directed to increase LPG production, resulting in a 30 per cent rise in output since early March.
To manage limited supplies, the government has prioritised cooking gas deliveries for households, hospitals and educational institutions. Commercial users such as restaurants and hotels have been asked to consider alternative fuels including coal, biomass and fuel oil where possible.
These measures highlight the government’s attempt to ensure that essential cooking gas supplies remain stable despite global disruptions.
Iran’s Role In Preventing A Deeper Crisis
Despite tensions in the region, diplomatic engagement between India and Iran has continued.
In a notable development, Iran allowed two Indian-flagged LPG carriers to pass through the Strait of Hormuz, even though it had largely halted shipping traffic through the waterway following the conflict.
One of the vessels, Shivalik, crossed the strait under escort from the Indian Navy, while another tanker, Nanda Devi, was expected to follow shortly after.
This rare exception underscores the importance of sustained diplomatic communication. India had sought exemptions to ensure the transit of essential energy supplies, and the arrangement demonstrates that diplomatic channels remain functional even during heightened geopolitical tensions.
Such cooperation indicates that India’s balanced foreign policy—maintaining working relationships with both Western powers and regional actors—can yield tangible benefits during crises.
Energy Security Measures Already In Place
Beyond short-term supply management, India has been strengthening its energy security architecture over the past decade.
The country now maintains strategic petroleum reserves stored in underground caverns at Visakhapatnam, Mangaluru and Padur. Together, these reserves hold around 5.33 million tonnes of crude oil—roughly equivalent to 9 to 10 days of national demand.
In addition to these strategic reserves, commercial stocks held by oil companies provide around 25 days of crude supply. Petrol and diesel inventories offer another 25 days of coverage, while cooking gas stocks typically cover between 25 and 30 days.
Cargo-tracking data also indicates that nearly 100 million barrels of commercial crude are currently either stored or in transit to India, enough to sustain imports for over a month even if Hormuz shipments are disrupted.
These reserves mean the immediate threat facing India is not necessarily a physical shortage of fuel but rising costs due to global price volatility.
The LNG Challenge And Long-Term Solutions
While oil and LPG supplies are relatively secure in the short term, liquefied natural gas remains the most vulnerable segment of India’s energy system.
Around half of India’s gas requirement is met through LNG imports, much of which comes from Qatar. If shipments through the Gulf remain disrupted, city gas distribution networks and industries relying on natural gas could face shortages.
To address this risk, policymakers are exploring the idea of creating a strategic LNG buffer within existing storage infrastructure. A proposal to maintain a 10 per cent emergency reserve across LNG terminals is currently under discussion.
At the same time, India is considering broader strategies such as diversifying gas imports, expanding overseas energy investments and increasing domestic production.
The government is also planning to expand the strategic petroleum reserve programme. Once the second phase is completed, total crude storage capacity could more than double, providing significantly greater protection against future supply shocks.
Foreign Policy And Energy Strategy Converge
The ongoing West Asia crisis illustrates how foreign policy and energy security are closely intertwined for India.
Maintaining diplomatic flexibility allows India to engage with multiple partners simultaneously—from the United States and Israel to Iran and Gulf countries—without becoming entangled in their rivalries.
At the same time, domestic policy responses such as boosting LPG production, prioritising household gas supplies and building strategic reserves help mitigate the economic impact of global conflicts.
Together, these strategies form a comprehensive response that combines diplomacy, economic planning and energy management.
A Crisis That Reinforces India’s Strategic Approach
The Iran–Israel–US confrontation represents one of the most serious geopolitical crises affecting global energy markets in recent years. For India, the conflict has exposed both vulnerabilities and strengths.
Dependence on imported energy remains a structural challenge, particularly when key shipping routes like the Strait of Hormuz become unstable. However, the crisis has also shown that India possesses the diplomatic agility and policy tools needed to navigate such disruptions.
By maintaining balanced relations across West Asia while simultaneously strengthening its domestic energy systems, India is demonstrating that it can manage the pressures of geopolitics without compromising national interests.
In that sense, the current moment is less a sign of weakness and more a testament to the resilience of India’s foreign policy and energy strategy—both of which are proving capable of managing the Iran crisis and the LPG supply shock at the same time.
