India, US talk Hormuz de-escalation, energy and trade as regional tensions simmer

India and the US are tightening their diplomatic embrace as the Gulf conflict grinds on. US Secretary of State Marco Rubio met India’s External Affairs Minister S. Jaishankar on Saturday to discuss the Middle East conflict, maritime security, energy supplies and trade, according to a joint ministerial briefing. The meeting comes as Washington signaled movement on a possible agreement with Iran to end the war and open the Strait of Hormuz.

Marco Rubio began his four day visit to India on Saturday which will conclude with tomorrow's Quad foreign ministers’ meeting — a multilateral framework between India, Japan, US, and Australia to counter China. Rubio met Prime Minister Modi on his arrival, however, both sides were tight-lipped about the outcomes of that meeting.

The US and its Gulf partners have made progress on a framework to reopen the Strait of Hormuz, Rubio noted, hinting that there could be “good news.” However, he cautioned that any final settlement still hinges on Iranian acceptance and follow-through.

The Hormuz track: “We share as a strategic value the fact that no international waterway, no international airspace should ever be used or nationalized by any country in the world and that should never be accepted as a new normal,” Rubio said.

India’s line — walking the diplomatic tightrope: Jaishankar framed New Delhi’s approach to the Iran war as a non-zero-sum game. With strong strategic ties to the US, Israel, Iran, and the broader Gulf, India has direct equities tied up in the conflict. “For us, the challenge in this situation is how to maintain all these relationships, how to protect our equities, how to advance our interests,” Jaishankar explained. He highlighted India’s core priorities: protecting these diplomatic relations, advancing peace initiatives, lowering energy prices, and ensuring safe maritime commerce.

Energy security meets trade: The ongoing Gulf crisis is actively accelerating India’s push to diversify its fuel sources, drawing it closer to the US. Jaishankar emphasized that securing accessible and affordable energy for India's 1.4 bn citizens remains paramount, noting that the US has firmly emerged as a crucial and reliable energy supplier for the country. Beyond energy, the two ministers also discussed finalizing an interim reciprocal trade agreement, setting the stage for a broader bilateral trade pact in the future.

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