Good afternoon, readers, and happy weekend. The toll of war continues to dominate national and global headlines, with an off-ramp not in near sight.

India has secured an extension on a sanction waiver to buy Russian crude, even as refiners are seeking to bypass the Strait of Hormuz via Saudi Arabia’s west coast. Diplomatic efforts to pressure Iran to allow Iran-bound shipments through the strait have gathered steam, however, without a definitive breakthrough.

Watch this space

MANUFACTURING — India is drafting a second phase of smartphone manufacturing incentives that would tie government subsidies to exports and deeper local sourcing, Bloomberg reports, citing unnamed sources.

The plan would replace the current incentive scheme for handsets assembling, which expires at the end of March and primarily rewards incremental domestic output. The next phase aims to encourage companies to increase exports while integrating locally produced components into the supply chain.

Remember: The value of iPhones shipped from India in 2025 was USD 50 bn. Apple also announced plans to assemble and package iPhone chips in India last year.

Why it matters: The policy underlines the growing role of Apple and its suppliers in transforming India into a major smartphone export hub. Contract manufacturers assembling iPhones account for roughly three-quarters of India’s handset exports. New Delhi is seeking to encourage brands such as Samsung, Oppo and Xiaomi to replicate Apple’s model in India. India will soon emerge as a key source of smartphone and electronics imports for the MENA region.

Beyond assembly: A key proposal under discussion is to link subsidies to the amount of components sourced within India. Manufacturers using locally produced parts — such as display modules, camera assemblies and other sub-components — and export finished smartphones would qualify for the highest incentives. This is part of New Delhi’s push to move beyond simple assembly and build a stronger domestic electronics supply chain.

LOGISTICS — The first India destined ship to cross the Strait of Hormuz since the US-Israel strikes on Iran carried crude oil from Saudi Arabia and docked at the Mumbai port. The Liberia-flagged Suezmax Shenlong arrived on Wednesday with about 135k metric tonnes of crude bound for refineries along the western coast, News on Air reports.

Transit under risk: The vessel temporarily turned off its automatic identification system, a step sometimes taken by tankers navigating high-risk waters. The ship later reappeared on tracking systems and completed its voyage. The passage indicates a rare transit of oil through Hormuz that carries roughly a fifth of global crude trade and remains critical for India’s energy security.

What we know so far: According to India’s shipping ministry, 28 Indian-flagged vessels are currently stranded in the Persian Gulf. Of these, 24 ships carrying 677 Indian seafarers are positioned west of the Strait of Hormuz, while four vessels with 101 Indian crew members are located east of the Strait.

CURRENCY — The INR fell to a record low of INR 92.43 per USD on Friday, breaching its previous low of INR 92.36 per USD. The currency has weakened 1.5% since the conflict started, despite intervention by the Reserve Bank of India (RBI) across spot and derivatives markets. Further weakening toward INR 94-95 per USD if oil prices remain elevated, Reuters reports citing analysts and traders.

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The big story abroad

It’s a mixed bag in the global business press this morning, but most news outlets are looking at oil prices, which have refused to let up after both US President Donald Trump and new Iranian Supreme Leader Mojtaba Khamenei struck a defiant tone in separate statements yesterday, giving no hints of a near end to the war.

Khamenei made his first public statement since his appointment, and his message was: he plans to ensure the Strait of Hormuz will remain effectively closed, and that if the US and Israel continue their attacks, Iran would open up new fronts in the war.

Meanwhile, Trump shrugged off rising oil prices, saying that preventing Iran from having nuclear weapons “of far greater interest and importance to me” in a social media post. Still, the US eased restrictions on Russian oil in what seems like a move to help ease prices, allowing companies to buy Russian oil stranded at sea.

Also getting attention: A US refueling military aircraft crashed in Iraq. It’s not clear yet whether the three-man crew was injured or killed.

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