US Accuses China of Funding Iran Amid Hormuz Tensions

US-China tensions rise as Washington links Beijing’s Iran oil imports to terrorism financing, urges support to reopen Strait of Hormuz ahead of Trump visit

Sharp remarks from US

In a pointed escalation of rhetoric, US Treasury Secretary Scott Bessent has accused China of effectively financing Iran by continuing to import large volumes of its oil, describing Tehran as the “largest state sponsor of terrorism”. The comments come at a sensitive moment, just days before US President Donald Trump is scheduled to visit Beijing for high-level talks with Chinese President Xi Jinping.

According to officials familiar with the matter, the remarks were made during a media interaction on Monday and reflect growing unease within Washington over Beijing’s energy ties with Tehran.

Oil trade under scrutiny

Bessent alleged that China has been purchasing nearly 90 per cent of Iran’s energy exports, a claim that underscores longstanding US concerns over sanctions enforcement. “Iran is the largest state sponsor of terrorism, and China has been buying most of their energy,” he said, suggesting that such transactions were helping sustain the Iranian regime despite Western pressure.

The US has, since 2018, attempted to restrict Iran’s oil revenues under its “maximum pressure” campaign, following its exit from the nuclear agreement known as the Joint Comprehensive Plan of Action (JCPOA).

Hormuz crisis deepens

The criticism comes amid rising tensions in the Strait of Hormuz, a critical maritime corridor through which a significant portion of the world’s oil supply passes. Recent disruptions, which Washington attributes to Iranian actions, have affected shipping movement in the region.

Bessent said the US was working to reopen the waterway through an initiative dubbed “Project Freedom”, aimed at ensuring safe passage for vessels currently stranded or rerouted due to the situation.

Call for China’s support

Despite the sharp tone, the US has urged Beijing to play a constructive role. Bessent called on China to back international efforts to secure the Strait of Hormuz and to use its diplomatic leverage with Iran.

“I would urge the Chinese to join us in supporting this international operation,” he said, adding that Beijing’s influence could prove critical in persuading Tehran to ease tensions and restore normalcy in the shipping lane.

Sources indicated that Washington sees China’s involvement as key, given its deep economic engagement with Iran, particularly in the energy sector.

Diplomatic pressure on Tehran

Alongside operational support, the US is also pushing for diplomatic intervention. Officials suggested that China could help de-escalate the crisis by encouraging Iran to reopen the strait and avoid further confrontation.

Bessent reiterated that the US had made it clear Iran does not have unilateral control over the strategic passage and that international cooperation would be necessary to maintain maritime security.

UN stalemate continues

Efforts to build a global consensus, however, have faced hurdles. At the United Nations, a proposed resolution condemning Iran’s alleged blockade of the Strait of Hormuz was recently vetoed by China and Russia, leading to a diplomatic impasse.

Defending Beijing’s position, Chinese envoy Fu Cong said the draft lacked balance and did not adequately reflect the broader geopolitical context, including actions by the US and its allies.

Beijing pushes back

China has also pushed back against US sanctions targeting its firms engaged in Iranian trade. Responding to recent measures, Chinese Foreign Ministry spokesperson Lin Jian criticised what he described as “illicit unilateral sanctions” and cautioned Washington against overreach.

Analysts note that China’s continued engagement with Iran reflects both strategic and economic considerations, including energy security and regional influence.

Focus on upcoming summit

The developments come ahead of the anticipated Trump–Xi meeting, which is expected to cover a wide range of issues including trade, security, and regional stability. While tensions remain high, there are indications that both sides may seek to stabilise ties through dialogue.

Bessent suggested that leader-level engagement could help ease friction, noting that mutual respect between the two countries’ leadership has previously contributed to stability.

As the situation unfolds, the US-China-Iran dynamic is likely to remain a focal point in global diplomacy, particularly with the Strait of Hormuz tensions continuing to impact energy markets and international shipping.

Karachi Residents Resort to Storing Gas in Plastic Balloons Amid Severe Energy Crisis

Residents in several parts of Karachi have begun using a highly dangerous "hack" to cope with the city’s worsening fuel shortage: storing natural gas in large plastic balloons for household cooking. The practice, which involves filling industrial-grade plastic bags directly from the gas line during the few hours of supply, has turned kitchens in densely populated neighborhoods into potential disaster zones.

Moving bombs in residential kitchens

The trend is most visible in areas like Orangi Town, Mominabad, and parts of Landhi, where the Sui Southern Gas Company (SSGC) has implemented drastic load-shedding. These "gas bags" are often seen being carried through narrow lanes or hooked up to small suction pumps in cramped kitchens. Safety experts have issued frantic warnings, describing the makeshift storage as "moving bombs."

"These plastic bags are not designed to hold pressurized, flammable gas," said a local safety consultant. "Even a small spark from a kitchen stove, friction from moving the bag, or a lit cigarette nearby can cause a massive explosion. In these congested colonies, one blast could take out an entire block."

Escalation linked to regional conflict

While Karachi has faced gas shortages for years, the current crisis has been exacerbated by the ongoing conflict in the Middle East. With the 2026 Iran war disrupting global energy routes, including the critical Strait of Hormuz, Pakistan’s LNG supply chain has effectively collapsed. Force Majeure declarations from major suppliers like Qatar have left the country scrambling for fuel.

Power Minister Awais Leghari recently confirmed that the country is facing a massive shortfall, with LNG-fired plants producing only a fraction of their capacity. For Karachi’s residents, this macro-level energy war translates to cold stoves and a desperate reliance on the "balloon hack."

High cost of temporary storage

Despite the risks, a local market for these specialized balloons has emerged. Residents report that the bags are being sold for anywhere between 1,000 to 1,500 Pakistani rupees. Users wait for the brief windows of gas supply—often late at night or for an hour in the morning—to fill the bags using compressors.

"We know it is dangerous, but what is the alternative?" asked a resident of Mominabad, who requested anonymity. "Cylinders are too expensive now because of the fuel crisis, and wood is hard to find in the city. We have to feed our children."

SSGC struggles with pressure drops

The SSGC has reportedly revised its supply schedule multiple times this month, but many "tail-end" consumers say they receive zero pressure even during scheduled hours. The utility company has attributed the low pressure to the overall shortfall and the widespread use of illegal suction pumps, which further depletes the network.

In industrial areas, the situation is equally grim. The SSGC recently announced a 24-hour suspension for all industrial customers to prioritize domestic "line-packs," yet the trickle-down effect for the average household remains negligible.

Experts call for urgent intervention

The government has urged citizens to conserve energy and avoid these hazardous storage methods, but enforcement remains a challenge in the city’s sprawling informal settlements. As global energy prices remain volatile due to the Iran-US tensions, analysts believe the fuel crisis in Pakistan will persist well into the summer.

For now, the sight of children carrying gas-filled balloons through the streets of Karachi remains a haunting reminder of the lengths to which people will go when the basic infrastructure of a city fails under the weight of a global energy shock.

First LNG cargo in two months passes through strategic strait even as tensions persist; Tehran claims Washington's influence is waning

LNG Tanker Crosses Critical Waterway

The first liquefied natural gas shipment since the Iran war began two months ago has crossed the Strait of Hormuz and exited the Persian Gulf, ship-tracking data reviewed by Bloomberg showed on Tuesday.

The Mubaraz, which loaded LNG from Abu Dhabi National Oil Co.'s Das Island facility in the UAE around early March, was spotted passing the southern tip of India, according to the report. The tanker had been idling inside the Persian Gulf before it stopped transmitting signals around March 31.

Energy markets have been watching the strait closely. About one-fifth of the world's oil normally flows through this waterway.

Iran Says US Influence Fading

Iran's defence ministry spokesman Reza Talaei-Nik said on Tuesday that Washington is no longer in a position to dictate policy to other nations.

"The United States is no longer in a position to dictate its policy to independent countries," Talaei-Nik told state TV. He added that Washington would eventually "accept that it must abandon its illegal and irrational demands."

The remarks came as US officials weigh a new proposal from Tehran aimed at ending the West Asia war.

Rubio Calls Iranian Offer 'Better Than Expected'

US Secretary of State Marco Rubio acknowledged that Tehran's latest proposal is "better than what was expected," though he stressed that any future agreement must permanently prevent Iran from acquiring nuclear weapons capability.

The White House confirmed the Iranian proposal is under discussion. Press Secretary Karoline Leavitt said Washington's red lines remain in place while the offer is being considered.

Israeli Strikes Continue in Lebanon

Meanwhile, the Israeli military said its forces have destroyed more than 1,000 Hezbollah sites in southern Lebanon, including booby-trapped structures and buildings allegedly used to store weapons. The military also claimed to have seized hundreds of weapons, including anti-tank missiles, rockets, and mortar shells.

The operations continue despite a three-week ceasefire extension announced by US President Donald Trump. Hezbollah leader Naim Qassem has declared that his group will continue its "defensive resistance for Lebanon and its people."

Global Impact Widens

Australian Foreign Minister Penny Wong said the strait's closure is being felt disproportionately across the Asia Pacific region due to energy supply disruptions. Oil prices edged higher again on Tuesday, with Brent crude futures rising to $108.68 per barrel.

UN Secretary-General Antonio Guterres has appealed for freedom of navigation in the waterway, warning that prolonged disruption risks triggering a global food emergency.

Digital Blackout Enters 60th Day

Monitoring group NetBlocks reported that Iran's digital darkness entered its 60th day on Tuesday, with the public largely cut off from the global internet. Tehran police separately said they had discovered a residential unit "equipped with Starlink" in the Yousefabad district, alleging it was used for "espionage activities."

What Comes Next

Diplomatic efforts continue. Iranian Foreign Minister Abbas Araghchi arrived in Islamabad on Tuesday for his third visit to Pakistan in 48 hours, following talks with Russian President Vladimir Putin in St. Petersburg. The Gulf Cooperation Council will convene an exceptional summit in Jeddah later Tuesday.

Only 7-14 Days of Natural Gas Left in India Amid Iran War

With LNG shipments stalled through the Strait of Hormuz, imported stocks are critically low and the government has already invoked emergency supply rules to protect households while industries brace for cuts.

Days of natural gas left in India have shrunk to just one or two weeks for the imported portion as the Iran war disrupts key routes, officials and analysts confirm. Domestic production covers roughly half the needs, but the other half — reliant on LNG — now faces real pressure. Households using piped natural gas (PNG) need not panic yet, yet price hikes loom if the conflict drags on.

PNG Network Expands Rapidly

Urban families continue switching from LPG cylinders to PNG for convenience and steady supply. India has crossed 1.5 crore PNG connections, with fresh additions of over 1.25 lakh in the past two weeks alone. City gas distribution projects are accelerating, and CNG remains the second-most popular auto fuel after petrol.

The shift gained speed after LPG supplies tightened. More than 5,600 households moved from cylinders to PNG in just three days, according to petroleum ministry updates.

Supply Sources Breakdown

Roughly half the gas feeding PNG networks and city distribution comes from domestic fields operated by ONGC and Reliance in the KG basin. The remaining half arrives as LNG, mostly under long-term contracts with Qatar.

Nearly 70 per cent of these imports must sail through the Strait of Hormuz. Smaller volumes from the US, Australia and Russia provide some diversification, yet the Gulf route dominates.

Hormuz Chokepoint Threat

The narrow waterway has become the focal point of the Iran war. Qatar’s Ras Laffan terminal — source of over half India’s LNG — halted fresh loadings after the conflict escalated. Cargoes already at sea are reaching Indian terminals, but future shipments remain uncertain.

Shipping data show delays and rerouting. Industry trackers report that even Petronet’s captive tankers faced hold-ups at Dahej, leaving some terminals with just days of buffer.

Limited Storage Buffer

Unlike crude oil, India maintains no strategic gas reserves. Stocks sit only as working inventory at regasification terminals in Dahej, Hazira, Kochi and Ennore. These cover at most one to two weeks of imports — or roughly 9-12 days of total consumption in some estimates.

Recent tenders for March LNG cargoes went unawarded as prices spiked above $25 per million Btu. Terminal operators now operate with minimal cushion.

Priority for Households

The government has issued the Natural Gas Supply Regulation Order 2026 to ring-fence essential users. Households with PNG connections and fertiliser plants rank highest. Power plants and industries will feel the squeeze first and may switch to fuel oil, coal or LPG.

Officials are urging conservation and faster PNG adoption to ease pressure on LPG, which already serves 33.37 crore consumers and faced earlier disruptions.

Price Hike Warnings

Shortages may not hit kitchens immediately, but costs will rise. Market response to Hormuz risks has already pushed LNG prices higher. PNG distributors will pass on increases to urban consumers, while factories absorb deeper cuts or pay premium rates for alternatives.

Experts from Global Trade Research Initiative note that prolonged disruption will force both households and industry to pay more. No outright rationing is expected for domestic PNG, yet bills are set to climb.

Energy Security Outlook

The crisis has revived talk of strategic LNG storage. Policymakers are studying extra tanks at existing terminals and a 10 per cent government-accessible buffer. Pipeline expansion to 25,000 km and new city gas projects continue, yet import dependence remains a weak spot.

As the Iran war enters a critical phase, the coming weeks will test India’s ability to balance supply, price and priority use. With days of natural gas left in India under close watch, the government is monitoring global cargoes and domestic output round the clock. Any extension of the conflict will likely bring higher PNG tariffs and renewed push for local exploration and renewables.

LPG from US, Crude from Russia Reach India

Ships Dock Safely

A cargo ship loaded with liquefied petroleum gas (LPG) from Texas in the US docked at Mangaluru Port on Sunday. Another vessel carrying crude oil from Russia also reached India the same day. Sources in the shipping ministry confirmed both ships passed through tense waters without incident.

In the past week, five such vessels have arrived by sea. Officials hailed the development as a boost amid regional disruptions.

Recent Arrivals Detailed

The crude oil tanker Jag Ladki berthed at Mundra Port in Gujarat on March 18. It carried 80,886 metric tons from Fujairah in the UAE.

On March 17, MT Nanda Devi reached Vadinar Port in Jamnagar with 46,000 metric tons of LPG. The day before, MT Shivalik arrived at Mundra carrying another 46,000 metric tons from Qatar—equivalent to 32.4 lakh domestic cylinders.

All three transited the Strait of Hormuz between March 14 and 18.

22 Ships Still Safe

The Centre reported all 22 Indian-flagged ships remain stranded in the Persian Gulf but are safe. "No damage or threats reported," a ministry spokesperson said.

The Strait of Hormuz, a 167-km waterway linking the Gulf to the Arabian Sea, handles 20% of global oil. Tensions have halted most tanker traffic.

LPG Boost Announced

States will receive 20% more LPG from March 23, pushing supplies to 50% of pre-crisis levels. Dr Neeraj Mittal, Secretary in the Ministry of Petroleum and Natural Gas, wrote to chief secretaries directing priority to community kitchens, dhabas, hotels, and industrial canteens.

Migrant workers get first dibs on 5 kg free trade LPG cylinders. Authorities urged steps against black marketing.

War Disrupts Supplies

The crisis stems from Operation Epic Fury on February 28, when US and Israeli forces struck Iranian military and nuclear sites. Supreme Leader Ayatollah Ali Khamenei and several ministers died in the attacks.

India sources 80-85% of its LPG imports via Hormuz. As the world's second-largest importer, the country faced shortages, though the government dismissed shortage rumours.

Import Dependence Exposed

More than 60% of India's LPG comes from abroad, mainly Gulf nations like Qatar, UAE, Saudi Arabia, Iraq, and Kuwait. The route's blockade hit supplies hard.

Russia and the US stepped in with alternate cargoes. Ports in Gujarat and Karnataka handled the latest inflows smoothly.

Priority Sectors Benefit

Households, restaurants, and factories stand to gain most. The extra allocation eases pressure on daily cooking fuel.

Industry watchers expect stabilised prices if arrivals continue. Black market risks persist without vigilant distribution.

Path Ahead Uncertain

The Centre monitors Gulf developments closely. Alternative routes and stockpiles provide a buffer, but prolonged conflict could strain reserves.

Shipping firms reroute where possible. Officials predict normalcy if Hormuz reopens soon. India pushes for diversified imports in this latest news today from English news portal India.

PM Narendra Modi Slams LPG Panic as Government Moves to Stabilise Supply

Amid growing concerns over the LPG shortage in India, Prime Minister Narendra Modi on Thursday accused certain groups of deliberately spreading panic about cooking gas availability. Speaking at the NXT Summit in New Delhi, the Prime Minister said rumours and misinformation were creating unnecessary anxiety among consumers during a challenging global energy situation.

“There is a lot of discussion about LPG these days. Some people are trying to create panic and pursue their own agenda,” Modi said, urging citizens not to believe rumours.

The government, meanwhile, has announced a series of emergency measures to ensure stable supplies and prevent disruptions across households and businesses.

Government Steps In to Address LPG Supply Crisis

As reports of shortages and long waiting periods emerged from several states, the Centre moved quickly to manage the LPG supply crisis.

Key steps announced include:

 Release of additional 19-kg commercial LPG cylinders to support businesses and restaurants.

 Allocation of 40,000 kilolitres of additional kerosene to states as an alternative cooking fuel.

 Increase in domestic LPG production from 25% to 28%.

 Instructions to state governments to identify priority beneficiaries for LPG distribution.

Officials from the Ministry of Petroleum and Natural Gas said India delivers nearly 50 lakh LPG cylinders every day, and no complete supply breakdown has been reported in the distribution network so far.

However, panic booking by consumers has caused a sudden spike in demand.

Global Energy Crisis Driving Supply Concerns

Experts say the LPG shortage in India is closely linked to ongoing geopolitical tensions in West Asia.

India imports nearly 60% of its LPG, and about 90% of those imports pass through the Strait of Hormuz, one of the world’s most important oil shipping routes. The route has become increasingly unstable due to tensions involving Iran and the United States.

Disruptions have also been reported after drone attacks targeted energy infrastructure in the Gulf region, affecting production in Qatar—India’s largest LNG supplier.

Energy analysts warn that such disruptions can quickly ripple through global supply chains, affecting cooking gas availability in import-dependent countries like India.

Restaurants, Businesses and Households Feeling the Impact

The ripple effects of the LPG supply crisis are already being felt across multiple sectors.

Several restaurants and hotels in cities across India have reportedly:

 Reduced menu options

 Shifted to coal or wood-fired cooking

 Temporarily shut operations due to lack of LPG

Food delivery platforms such as Swiggy and Zomato have also seen a drop in orders as eateries scale down operations.

In some regions, waiting periods for LPG refills have stretched from the usual two to three days to nearly a week.

Authorities have also reported instances of black marketing, with domestic cylinders priced around ₹900 allegedly being sold for up to ₹1,800 in certain areas.

Demand for Electric Cooking Appliances Surges

As concerns over the LPG shortage in India grow, consumers are increasingly turning to alternative cooking options.

E-commerce platforms such as Amazon and Flipkart have reported an unprecedented surge in sales of induction cooktops and electric kitchen appliances.

According to industry data:

 Induction cooktop sales on Amazon have jumped nearly 30 times.

 Online retailers have reported fourfold increases in orders.

 Several models are already out of stock on quick-commerce platforms like Blinkit.

Electronics retailers say households are buying these appliances as backup cooking options amid supply uncertainties.

Government Urges Citizens to Avoid Panic

Officials have repeatedly reassured the public that India’s energy supply remains secure despite global disruptions.

The government has invoked provisions under the Essential Commodities Act to curb hoarding and illegal sales while increasing domestic production.

Prime Minister Modi emphasised that India is working with global partners to stabilise supply chains while also pushing for long-term energy self-reliance.

The current LPG shortage in India highlights how global geopolitical tensions and supply chain disruptions can directly affect daily life. While the government has taken steps to boost production and manage distribution, experts say public cooperation and avoiding panic buying will be key to stabilising the situation.

For now, authorities insist that supplies remain under control—but the situation continues to be closely monitored as the global energy crisis evolves.

US Considers Lifting Tariffs on India Amid Major Shift Away From Russian Oil

In a significant development for global trade diplomacy, the United States has signaled it may roll back contentious extra tariffs imposed on India. The potential shift comes as US Treasury Secretary Scott Baesant hailed India's substantial reduction in Russian oil imports as a "huge success" for American foreign policy.

The announcement, made during Secretary Baesant's media interactions, underscores a warming in economic relations between the two democracies, linked directly to energy geopolitics. This move could pave the way for smoother negotiations on a broader trade agreement long under discussion.

The Tariff Bargaining Chip

The US has levied two sets of 25% tariffs on India. The first was tied to longstanding trade imbalances, while the second, more recent round was a direct response to India’s surge in purchasing discounted Russian crude following the Ukraine war. Secretary Baesant indicated that this second 25% tariff, now deemed "quite effective," could be on the chopping block.

"After Trump imposed the 25% tariffs, India significantly reduced its oil purchases from Russia and has now almost stopped them," Baesant stated last week in Davos, framing the tariffs as a successful pressure tool. This creates, in his view, "room for tariff relief."

India's Strategic Pivot on Oil

The data reveals a complex picture. After the Ukraine conflict began, India became a top buyer of Russian crude, capitalizing on steep discounts. At its peak, Russian oil constituted over 35% of India’s imports. However, recent months have seen a sharp decline, with December 2025 imports hitting a three-year low.

Experts point to multiple reasons for this shift:

Vanishing Discounts: With global oil prices falling to around $63 per barrel, Russia’s discount has shrunk from $20-25 to just $1.5-2 per barrel, eroding the cost advantage.

Payment & Logistics Hurdles: Sanctions complicate dollar transactions, and Russia is reluctant to hold non-convertible Indian rupees, making deals cumbersome.

Strategic Diversification: India is consciously returning to more stable suppliers in the Middle East and the US.

A Delicate Balance of Interests

The Indian government has consistently maintained that its energy decisions are sovereign and driven by national interest, seeking "cheap and reliable" oil. The potential tariff relief appears to be a diplomatic reward for aligning, even if indirectly, with Western efforts to curb Moscow's war revenue.

Baesant's criticism of European nations for buying refined fuels from India—oil potentially processed from Russian crude—further highlights the complex web of global energy flows. He accused Europe of "indirectly helping Russia," contrasting it with the US's tougher stance.

Conclusion: A New Chapter in US-India Trade?

The consideration to lift tariffs on India marks a pivotal moment. It suggests a pragmatic recognition in Washington that coercion has limits, and incentives can yield desired strategic outcomes. For India, it validates its multi-aligned, interest-driven foreign policy. As both nations negotiate a wider trade pact, this step could thaw relations, proving that even amidst global fractures, mutual economic benefit remains a powerful unifier. The world will now watch to see if this signaled intent translates into signed action.