India’s Prime Minister Narendra Modi is stepping up engagement with Iran as a worsening conflict in the Middle East causes severe gas shortages in the country and threatens economic growth, testing New Delhi’s relations with the U.S.
Modi’s government said Saturday it secured the safe transit of two tankers carrying liquefied petroleum gas through the Strait of Hormuz, which has been all but closed for two weeks after the U.S. and Israel launched airstrikes against Iran. India is among only a few nations, including China and Russia, which has had ships pass through the strait safely since the war began.
Although initially remaining silent on the strikes against Iran, India is now intensifying its diplomacy as the fighting worsens and panic spreads to energy and financial markets. India is the second-largest importer of LPG in the world and is suffering acute shortages of the fuel, used in cooking gas and industrial processes. India also imports almost 90% of its oil, so crude prices above $100 will push up inflation and pressure the currency, which is already trading at record lows.