The United Arab Emirates (UAE) has unveiled a long-term strategy aimed at ending its dependence on the Strait of Hormuz, a key global shipping route that handles a significant share of the world's oil and gas exports.

The announcement comes at a time when the Strait of Hormuz is expected to reopen following a recent agreement between the United States and Iran. However, concerns over future disruptions and potential transit restrictions have prompted the UAE to accelerate efforts to establish alternative trade and energy corridors.

Speaking about the country's plans, UAE Foreign Trade Minister Thani Al Zeyoudi said the objective is to reduce dependence on the Strait to zero through major investments in infrastructure.

Eastern Ports at the Core

Unlike several Gulf nations whose exports must pass through the Strait of Hormuz, the UAE possesses strategically located ports on its eastern coastline outside the strait. These include Fujairah, Dibba and Khor Fakkan, which continued to facilitate energy exports during periods of regional conflict.

The UAE now plans to significantly expand these facilities and transform them into major hubs for international trade and energy shipments. Officials believe these ports can provide a secure alternative route for exports while reducing exposure to geopolitical risks in the Gulf.

New Pipelines and Rail Links

A key component of the strategy involves the construction of at least two additional oil and gas pipelines connecting production facilities to eastern ports.

The UAE already operates a pipeline that transports crude oil directly to Fujairah, allowing exports to bypass the Strait of Hormuz. The proposed expansion would increase capacity and strengthen the country's energy security.

Authorities are also studying the development of railway infrastructure to support the transportation of energy products and commercial cargo between inland production centers and eastern ports.

Lessons from Regional Conflict

Recent tensions in West Asia highlighted vulnerabilities in regional energy supply chains. Although the UAE managed to maintain exports through its eastern facilities, attacks on infrastructure and growing uncertainty over maritime security accelerated discussions about long-term alternatives.

Officials say the experience exposed logistical gaps and reinforced the need for diversified transport routes. As a result, infrastructure planning has become a strategic priority for the country.

Challenges Remain

Despite progress on the export side, challenges remain for imports. The UAE continues to rely heavily on Jebel Ali Port, one of the world's largest commercial ports located inside the Persian Gulf.

Shifting a substantial portion of import traffic to eastern ports would require major investments and extensive logistical restructuring. Experts note that while the strategy is achievable, it will likely take several years to implement fully.

Strategic Economic Shift

The UAE's plan reflects a broader effort to strengthen economic resilience and safeguard its role as a global trade and energy hub. By expanding alternative transportation corridors and reducing reliance on a single maritime chokepoint, the country aims to protect supply chains, attract investment and maintain stable export operations regardless of future regional developments.

The initiative is expected to play a significant role in shaping the UAE's energy and trade strategy over the coming decade.

A significant diplomatic breakthrough has emerged in the Middle East after the United States and Iran signed a 14-point Memorandum of Understanding (MoU) aimed at extending the ceasefire between the two countries and creating a pathway toward a comprehensive settlement. The agreement, signed by US President Donald Trump and Iranian President Masoud Pezeshkian, establishes a 60-day framework for negotiations on critical issues including sanctions relief, nuclear restrictions, regional security, and economic reconstruction.

The deal comes after months of tensions that disrupted shipping through the Strait of Hormuz, affected global energy markets, and heightened concerns over Iran’s nuclear programme. While both sides have described the agreement as a major step forward, officials have also acknowledged that the memorandum serves as a framework for future negotiations rather than a final settlement.

Under the agreement, military operations between the two sides are to cease immediately, and both countries have pledged to respect each other’s sovereignty and refrain from interference in domestic affairs. A formal negotiation process has now begun, with a target of reaching a final agreement within 60 days, although the timeline can be extended by mutual consent.

Strait of Hormuz Reopening

One of the most consequential elements of the deal concerns the reopening of the Strait of Hormuz, a critical maritime route through which a substantial share of global oil exports passes.

Iran has committed to facilitating safe passage for commercial vessels, while the United States has agreed to begin lifting restrictions affecting Iranian ports and maritime traffic. Shipping activity is expected to resume gradually as security and logistical measures are implemented.

The agreement also envisages future cooperation between Iran, Oman, and other Gulf nations on managing maritime security in the region.

Nuclear Commitments

A central feature of the memorandum is Iran’s commitment not to acquire nuclear weapons. Both sides have agreed to address Iran’s stockpile of enriched uranium under the supervision of the International Atomic Energy Agency (IAEA).

According to officials familiar with the negotiations, the current proposal involves downblending enriched uranium rather than destroying it outright. However, the precise technical arrangements remain subject to further talks.

The agreement also requires both countries to maintain the current status of Iran’s nuclear programme while negotiations continue. During this period, Washington has pledged not to impose new sanctions and to provide limited waivers related to oil exports and associated financial services.

Economic Relief and Reconstruction

The memorandum includes provisions for sanctions relief and economic recovery. The United States has agreed in principle to remove economic sanctions, although the timing and sequencing will be negotiated during the next phase of talks.

Another notable provision is a proposed reconstruction and economic development framework worth at least $300 billion. US officials have clarified that Washington is not necessarily committing direct funding but may facilitate investments from regional partners and international stakeholders.

The deal also opens the possibility of releasing frozen Iranian assets, with access tied to compliance and future agreements between the two sides.

Major Issues Still Unresolved

Despite the breakthrough, several difficult questions remain unanswered. Negotiators have yet to finalize the mechanism for handling Iran’s enriched uranium reserves, determine the exact timetable for sanctions removal, and establish how the proposed reconstruction fund will operate.

Regional security concerns also remain contentious. Iran’s relationships with groups such as Hezbollah, its missile programme, and broader regional influence were not fully resolved in the interim agreement. Analysts note that these issues could prove to be the most challenging parts of the upcoming negotiations.

Petroleum ministry says strategic reserves and commercial stocks secure supply as refiners report under-recoveries on petrol, diesel

 India currently holds the equivalent of about 76–80 days of fuel cover across strategic petroleum reserves, refinery inventories and commercial stocks, Petroleum Minister Hardeep Singh Puri said on Monday, even as oil companies told the government they are incurring large daily losses on retail fuels.

According to officials, the minister made the assessment in a briefing with senior ministry staff and industry representatives, stressing that short-term shocks in the Middle East would be manageable from existing stocks and alternative sourcing. “We have a comfortable cushion to meet short disruptions,” an official summary of his comments showed.

Refiners report steep under-recoveries

In a separate briefing the same day, Additional Secretary Praveen Khanuja said state-run refiners are facing under-recoveries — the gap between administered pump prices and actual costs — of roughly ₹30 per litre on diesel and about ₹6 per litre on petrol. That, Khanuja said, translates into an estimated daily loss of about ₹600–700 crore for oil companies, excluding LPG.

Industry sources familiar with the discussions confirmed the figure and said companies have flagged the strain to the ministry, urging support measures if sustained volatility pushes losses higher.

Short-term resilience, long-term risks

Puri told reporters that India’s priority is to maintain at least 60 days of cover for crude oil, natural gas and LPG each — a threshold the country is currently meeting, he said. He cautioned, however, that a prolonged escalation in the Gulf, especially if maritime chokepoints such as the Strait of Hormuz were closed for an extended period, would alter the outlook.

“If disruptions remain short-lived, we can manage through strategic reserves and alternate routes,” an aide to the minister said. “But a long-drawn conflict would have broader impacts on global energy markets and will need additional responses.”

Officials stressed that if the Strait of Hormuz were blocked temporarily, India could withstand around 30 days of disruption using available inventories and adjusted supply chains. The government has also been pursuing diversification of suppliers and additional long-term contracts to reduce concentration risk.

Supply diversification underway

Puri pointed to steps taken to widen supply sources beyond Gulf producers. He said talks have taken place to secure extra LPG cargoes from the United Arab Emirates if required, and pointed to planned gas supplies from Mozambique as another buffer that would strengthen India’s energy security over time.

The minister also highlighted domestic measures: expansion of drilling and exploration, faster investment in refining capacity and stock management. “We are not just dependent on strategic reserves — refinery inventories and retail stocks form a significant part of our buffer,” he said, noting India currently operates 24 refineries and continues to expand capacity.

Domestic stock management defended

Responding to criticism that India did not build up reserves when crude prices dipped after the pandemic, Puri rejected the charge. Officials explained that inventory management balances commercial use and replenishment; crude cannot be stored indefinitely at the cost of foregoing domestic supply needs and refinery runs.

The ministry said it will continue active stock rotation and procurement aligned with market conditions, while also accelerating domestic exploration projects, including in the Andaman basin.

Impact on consumers and next steps

For now, the immediate consumer impact is muted because pump prices in India remain regulated in part and retail changes reflect global price swings with a lag. Still, the reported under-recoveries signal pressure on state refiners’ finances, and sustained losses could push discussions on fiscal support, temporary price adjustments or targeted relief measures.

Officials said they will continue daily monitoring of port call schedules, cargo availability and refinery throughput. Industry sources expect the ministry to hold further meetings this week to review options if tensions in the Middle East intensify.

Related context

The ministry noted that LPG connections in the country have risen from about 14 crore in 2014 to more than 33 crore now, reflecting strengthened domestic distribution networks that would be mobilised in any disruption. Separate briefings this week also warned of inflationary pressure on household fuels if international LPG prices remain elevated.

EU Warns US-Iran Tensions Trapped in Dangerous Zone Between War and Peace

The United States carried out fresh military strikes on an Iranian site near the strategic port city of Bandar Abbas early Thursday, escalating tensions in the fragile US-Iran ceasefire. US Central Command confirmed the action, saying its forces downed four Iranian attack drones and hit a ground control station preparing to launch another.

Iranian media reported explosions east of Bandar Abbas, close to the Strait of Hormuz, though local authorities said there were no immediate casualties or major damage. The Islamic Revolutionary Guard Corps (IRGC) claimed it responded by targeting an “American airbase,” according to semi-official Tasnim news agency.

Strikes Follow Drone Threats

The US operation marked the second strike this week on Iranian targets. CENTCOM described the drones as posing a direct threat to maritime traffic around the critical chokepoint. Iranian sources, meanwhile, linked the incident to an alleged confrontation involving a US tanker attempting to cross the Strait of Hormuz without coordination.

Shipping data from LSEG and Kpler showed three large tankers — two supertankers and one LNG carrier — had passed through the strait earlier in the week with transponders switched off, heading toward India and China. Oil prices reacted sharply, with Brent crude climbing above $95 per barrel amid fresh uncertainty.

EU Sounds Alarm on Fragile Peace

In Cyprus, European Union foreign policy chief Kaja Kallas expressed deep concern over the flare-up. Speaking to reporters at a meeting of EU foreign ministers, she said the US and Iran were caught in a “very dangerous zone” between war and peace.

“They are right now in between this very dangerous zone of war and peace, and it is not in anybody’s interest that this war continues,” Kallas said. Her remarks came as both sides traded accusations despite ongoing diplomatic efforts.

Trump Administration’s Stance

US President Donald Trump convened a cabinet meeting at the White House to discuss the situation. He has repeatedly linked any potential deal with Iran to broader regional normalisation, including expansion of the Abraham Accords to more countries such as Saudi Arabia and Egypt. Secretary of State Marco Rubio reiterated that Washington seeks a diplomatic path but will not allow Iran to develop nuclear weapons.

Iranian officials, including Deputy Secretary of Iran’s Supreme National Security Council Ali Bagheri Kani, demanded the unconditional release of frozen Iranian assets, calling it the “legal right” of the Iranian people.

Energy Markets and Global Ripple Effects

The renewed hostilities are already reshaping global energy strategies. International Energy Agency chief Fatih Birol noted that the conflict has forced countries to seek alternative supply routes and bolster domestic production, warning of the biggest energy security crisis in decades.

In Asia, stock markets opened lower while oil futures surged. Traders remain wary as traffic through the Strait of Hormuz — a vital artery for global crude — stays severely limited compared to pre-conflict levels.

Regional Fallout Widens

The US-Iran exchanges come amid continued Israeli military operations in southern Lebanon, with fresh strikes reported in Tyre and Nabatieh, and new displacement orders issued by the Israeli army. However, the latest developments around Bandar Abbas have shifted immediate international focus back to the Gulf.

Local residents in Bandar Abbas reported hearing loud explosions in the morning, with Iranian air defence systems briefly activated. Iranian state media described the situation as under control.

What Lies Ahead

Diplomatic channels between the US and Iran remain active, though both sides appear locked in a tense standoff. Analysts say any sustained ceasefire will require significant concessions on sanctions, nuclear issues, and regional proxy conflicts.

For now, the situation in the Strait of Hormuz and surrounding waters remains highly volatile, with implications stretching far beyond the Middle East — affecting energy prices, shipping safety, and global economic stability.

Indian Oil Has One-Month Crude Stock, Profit Jumps 81% to ₹15,176 Crore

State-run refiner says no shortage despite ongoing Hormuz route disruptions; LPG sourcing shifted to Indonesia, Nigeria

Indian Oil Corporation (IOCL) has built a crude oil stockpile sufficient for over a month, the company said on Tuesday, assuring that domestic supplies remain unaffected despite continued tensions between the United States and Iran. The assurance comes as the strategically vital Hormuz Strait – through which nearly half of India’s energy imports pass – remains partially disrupted.

The public sector oil major also reported an 81 per cent surge in consolidated net profit for the January-March quarter of fiscal year 2025-26, reaching ₹15,176.08 crore compared to ₹8,367.63 crore in the same period last year.

Crude Stock Adequate

According to IOCL officials, the company holds more than one month’s worth of crude oil inventory, enough to cushion any immediate supply shocks. “We have multiple sources for crude oil and other petroleum products,” said Anuj Jain, Director (Finance) at IOCL. “All our refineries have been operating at full capacity since the Middle East dispute began.”

The Gulf region remains India’s primary energy supplier, but the ongoing conflict near the Strait of Hormuz has forced refiners to explore alternative routes and suppliers.

Hormuz Disruptions Bite

The Hormuz Strait, located between the Gulf of Oman and the Persian Gulf, handles approximately 20 per cent of global crude oil trade. The waterway’s partial closure continues to affect worldwide crude supplies, with India feeling the pinch on its liquefied petroleum gas (LPG) imports.

Officials confirmed that nearly 50 per cent of India’s energy supply and 90 per cent of its LPG imports from Gulf nations typically transit through this choke point. “Initial reports indicate that LPG stock levels have seen a marginal dip,” a source familiar with the matter said. “But the situation is being managed across the country.”

LPG Sourcing Shifted

Acknowledging supply bottlenecks, IOCL has moved quickly to secure gas from alternative markets. Following disruptions in Gulf supplies, the company initiated spot procurement from Indonesia, Nigeria, Angola and Oman.

“There were some interruptions in LPG supply,” Jain admitted, “but we have changed our import sources.” Local authorities confirmed that retail LPG distribution has not faced major shortages in any state so far, though some dealers in coastal regions reported delayed tanker arrivals last week.

Profit Surges, Dividend on Table

The company’s board recommended a final dividend of 12.5 per cent for FY26, translating to ₹1.25 per equity share of face value ₹10. The payout, however, remains subject to shareholder approval at the upcoming annual general meeting.

IOCL’s strong quarterly performance comes despite volatile crude prices and geopolitical headwinds. Market analysts attribute the profit growth to robust refining margins and lower inventory losses compared to the previous year.

Refinery Expansion Plans Underway

For the current financial year 2026-27, IOCL has earmarked a capital expenditure of ₹32,700 crore – slightly up from ₹31,401 crore spent in FY26. The bulk of this investment is directed at expanding refining capacity across three key sites.

The Panipat refinery is being expanded from 15 million metric tonnes per annum (MMTPA) to 25 MMTPA, with completion targeted by December 2026. The Gujarat refinery will see capacity rise from 13.7 MMTPA to 18 MMTPA at an estimated cost of ₹19,000 crore. Meanwhile, the Barauni refinery is set to increase from 6 MMTPA to 9 MMTPA. All three projects are expected to be commissioned around the same timeline.

Ground-level work at these sites is progressing steadily, with officials stating that land acquisition and equipment orders are largely complete. The expanded capacities are expected to reduce India’s dependence on imported petroleum products in the medium term.

PM Modi Concludes UAE Visit, Departs for Netherlands After Key Deals

Prime Minister Narendra Modi wrapped up his brief but significant visit to the United Arab Emirates on Friday and departed for the Netherlands, the next leg of his multi-nation tour. UAE President Sheikh Mohamed bin Zayed Al Nahyan personally saw off the Prime Minister at the airport, reflecting the deep warmth and strategic closeness between the two countries.

The visit, though short, yielded concrete outcomes in energy, defence, and investment. Officials described it as highly productive, coming at a time when West Asia faces ongoing challenges and global energy markets remain sensitive.

According to the Ministry of External Affairs, Prime Minister Modi and President Sheikh Mohamed bin Zayed Al Nahyan held detailed bilateral discussions covering energy security, trade, investment flows, and the broader situation in West Asia. India and the UAE signed an agreement on the supply of Liquified Petroleum Gas (LPG), along with MoUs on strategic petroleum reserves, defence cooperation, and the development of a ship repair cluster at Vadinar in Gujarat.

Major Investment Announcement

The UAE announced a $5 billion investment commitment in Indian infrastructure, including stakes in RBL Bank and Sammaan Capital. This move is expected to further boost economic linkages between the two nations, which already enjoy a comprehensive strategic partnership.

PM Modi, who arrived in Abu Dhabi earlier, received a ceremonial welcome complete with a guard of honour. In a notable gesture, UAE Air Force F-16 fighter jets escorted the Prime Minister’s aircraft, a visible symbol of the respect extended to India and its leadership.

Regional Concerns and Solidarity

During the talks, Prime Minister Modi emphasised the need for the Strait of Hormuz to remain open and secure, noting that disruptions in West Asia affect global trade and energy flows. He reiterated India’s long-standing position favouring dialogue, diplomacy, and adherence to international law for resolving regional disputes. Modi also expressed solidarity with the UAE, stating that India stands “shoulder-to-shoulder” with the country in all situations.

The Prime Minister thanked the UAE leadership for its support to the Indian diaspora during difficult times and for condolences extended after a recent natural disaster in India. He described the UAE as feeling like his “second home,” underlining the people-to-people bonds that complement the strong government-level ties.

Local observers and former diplomats noted the timing of the visit as particularly important. Former Indian Ambassador Sanjay Sudhir told ANI that the engagement sends a strong signal of India’s support amid evolving dynamics in West Asia. The UAE’s recent decision to exit OPEC and its plan to ramp up crude oil production to 5 million barrels per day by 2027 are also expected to open new avenues for long-term energy cooperation with Indian firms.

Productive Outcomes

PM Modi later termed the visit “short but highly productive.” Among other exchanges, the UAE President presented a Cerebras chip to the Prime Minister, highlighting growing cooperation in advanced technology sectors as well.

The two sides finalised around seven key outcomes during the visit, spanning defence, energy, and economic domains. These agreements build on years of steadily deepening partnership, with the UAE being one of India’s most important partners in the Gulf region for trade, investment, and energy imports.

As Prime Minister Modi heads to the Netherlands to continue his tour, officials indicated that the momentum gained in the UAE would feed into broader diplomatic and economic engagements ahead. The developments are being closely watched by industry circles in both countries for their potential to create new opportunities in infrastructure, energy security, and strategic collaboration.

For millions of Indians with connections to the Gulf, such high-level visits also reinforce a sense of reassurance about the strong bilateral relationship that directly impacts diaspora welfare and economic opportunities.

Tensions in the Middle East have escalated further after former US President Donald Trump claimed that Chinese President Xi Jinping has expressed willingness to help keep the Strait of Hormuz open amid growing geopolitical instability involving Iran, the United States, and Israel. The remarks have added a new diplomatic dimension to an already fragile global energy situation.

In an interview with Fox News, Trump stated that Xi Jinping had indirectly conveyed support for efforts to ensure uninterrupted navigation through the Strait of Hormuz, one of the world’s most critical oil transit routes. According to Trump, China has a strong interest in maintaining stability in the region due to its heavy dependence on Iranian crude oil imports.

“Xi Jinping wants some kind of agreement between the United States and Iran. If I can help, I would like to help,” Trump said, quoting the Chinese leadership’s position. He further added that countries heavily reliant on Iranian oil naturally prefer that the Strait of Hormuz remains open and secure for uninterrupted trade flows.

The Strait of Hormuz, a narrow maritime passage connecting the Persian Gulf with the Arabian Sea, handles nearly a fifth of global oil shipments. Any disruption in this corridor has historically led to volatility in global crude oil prices and triggered fears of supply shortages across Asia, Europe, and other major importing regions.

Alongside Trump’s remarks, Iran has introduced new operational protocols for vessels passing through the Strait of Hormuz. According to reports from Iranian state-linked sources, all commercial ships navigating the route are now required to comply with enhanced monitoring and clearance procedures under Iranian oversight. Tehran has framed these measures as necessary for national security amid rising regional tensions.

Iran has also intensified its diplomatic outreach, urging BRICS member countries to openly condemn the United States and Israel for what it describes as violations of international law and aggressive actions in the region. Iranian Foreign Minister Abbas Araghchi made the appeal during a recent BRICS meeting, arguing that global institutions have failed to address escalating instability in West Asia.

The situation has already begun affecting maritime movement. Reports suggest that several vessels have altered their routes due to security concerns. The US Central Command (CENTCOM) stated that increased tensions in the Strait have led to at least 70 commercial ships adjusting their planned passages, reflecting growing uncertainty among global shipping operators.

In a separate incident that highlights the fragility of the region, a cargo vessel reportedly linked to Gujarat was damaged near Oman under unclear circumstances involving a suspected drone or missile strike. All 14 crew members were safely rescued, but the incident has further heightened fears about the safety of commercial shipping in the area.

China’s role in the evolving situation is being closely watched by global analysts. As one of the largest importers of Iranian oil, Beijing has a strategic interest in ensuring stability in the Strait of Hormuz. Any disruption could significantly impact its energy supply chain and manufacturing sector. While China has not officially confirmed Trump’s claim, its diplomatic engagements in the region have consistently emphasized de-escalation and dialogue.

Experts believe that if major powers like China actively engage in mediation, it could reduce tensions between the United States and Iran. However, they also warn that competing geopolitical interests may complicate any coordinated solution. The Strait of Hormuz remains a sensitive geopolitical chokepoint where even minor incidents can escalate into broader conflicts affecting global markets.

Oil prices have already shown volatility in response to recent developments. Traders are closely monitoring supply risks, with concerns that prolonged instability could push crude prices higher and contribute to inflationary pressures worldwide. Energy-importing countries, particularly in Asia, are expected to be the most affected if disruptions continue.

Iran’s new regulatory stance, combined with increased naval presence and diplomatic pressure campaigns, signals a more assertive phase in its regional policy. At the same time, US and allied forces continue to emphasize freedom of navigation in international waters, maintaining a delicate balance to avoid direct confrontation.

The coming weeks are likely to be critical in determining whether diplomatic intervention can stabilize the situation or whether tensions in the Strait of Hormuz will further escalate into a wider geopolitical crisis. For now, global markets, shipping companies, and governments remain on high alert as developments unfold.

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Prime Minister Narendra Modi arrived in the United Arab Emirates on an official visit where he held bilateral discussions with UAE President Sheikh Mohamed bin Zayed Al Nahyan. During the meeting, India and the UAE signed several important agreements, including a major pact related to LPG supply and energy cooperation. The visit has emerged as a significant India News Update amid growing global concerns over energy security and geopolitical tensions in West Asia.

Prime Minister Modi received a ceremonial guard of honour upon his arrival in Abu Dhabi. According to reports, fighter jets of the UAE Air Force escorted the Prime Minister’s aircraft while entering the country’s airspace, reflecting the close strategic ties between the two nations. During the bilateral talks, both leaders discussed issues related to energy security, trade, investment, defence cooperation and regional stability in West Asia.

Officials said India and the UAE signed multiple Memorandums of Understanding covering LPG supply, strategic petroleum reserves, defence collaboration and development of a ship repair cluster at Vadinar. The agreements are being viewed as part of broader efforts by both countries to strengthen long-term energy and economic cooperation.

Sources indicated that the LPG supply agreement is expected to support India’s growing energy requirements while also helping diversify long-term supply arrangements. Apart from energy cooperation, the UAE also announced investments worth five billion US dollars in India. According to officials, the proposed investments will include sectors such as infrastructure, financial services and capital markets.

The UAE investment commitments reportedly include funding in Indian infrastructure projects, RBL Bank and Samman Capital. The Ministry of External Affairs stated that the two leaders reviewed the progress of the India-UAE Comprehensive Strategic Partnership and discussed ways to expand cooperation in several sectors.

Officials added that the discussions also focused on recent developments in West Asia and their possible impact on regional stability and global energy markets. India and the UAE have significantly strengthened bilateral relations over the past decade through growing trade, defence ties and strategic investments. The UAE remains one of India’s key partners in the Gulf region and is among the country’s largest trading partners. Energy imports from the Gulf continue to play a critical role in India’s economic and industrial growth.

Experts believe the latest agreements could further deepen economic integration between the two countries at a time when global energy markets remain volatile. The strategic petroleum reserve agreement is also being seen as an important step for strengthening India’s energy preparedness during international supply disruptions.

Officials present during the meeting exchanged documents related to the agreements in the presence of Prime Minister Modi and President Al Nahyan. Photographs released from the event showed senior officials from both countries participating in formal signing ceremonies and bilateral delegation-level discussions.

Diplomatic observers said the visit underlines the importance of India-UAE ties in areas ranging from trade and logistics to technology and defence partnerships. The defence cooperation component of the agreements is expected to enhance coordination in maritime security and regional strategic affairs.

India has steadily expanded cooperation with Gulf countries over the years through investment partnerships, energy agreements and diaspora engagement. The UAE is also home to a large Indian community, making people-to-people relations an important pillar of bilateral engagement.

Analysts noted that the latest announcements come at a time when countries across the world are seeking stronger energy partnerships due to instability in international crude oil markets. The visit and agreements signed during the meeting are likely to strengthen India’s position in securing long-term energy resources and attracting foreign investment.

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Iran's Araghchi in Delhi for BRICS talks on Hormuz safe passage

New Delhi and Tehran likely to discuss securing Indian vessels through Strait of Hormuz as tensions rise in West Asia

Iranian Foreign Minister Seyed Abbas Araghchi arrived in New Delhi on Wednesday evening, touching down just ahead of the two-day BRICS Foreign Ministers' Meeting that begins on May 14. His delegation was received by ministry officials at the airport, and he is scheduled to meet External Affairs Minister S. Jaishankar on the margins of the summit.

The visit, Araghchi's first to India since the escalation of hostilities involving Iran, the United States, and Israel earlier this year, comes at a critical moment for energy security in the region.

Strait of Hormuz in focus

Top of the agenda during bilateral talks is the safe passage of Indian-flagged vessels through the Strait of Hormuz. The narrow waterway, which handles roughly a fifth of global oil consumption, has become a flashpoint in recent weeks.

Officials familiar with the matter say Jaishankar is expected to raise specific concerns about the movement of oil tankers and commercial ships transiting between the Persian Gulf and the Gulf of Oman. Any disruption at Hormuz directly impacts India's crude imports, nearly 80 per cent of which come from Gulf suppliers.

40-50 vessels stranded

Initial reports indicate that between 40 and 50 India-bound ships remain stuck west of the Strait, waiting for clear passage. The backlog has built up over the past fortnight as tensions spiked following recent naval deployments in the area.

Local authorities in Mumbai and Gujarat ports have been monitoring the situation closely. According to shipping industry sources, some vessels have been rerouted, but the delays are already affecting delivery timelines and freight costs.

First visit since escalation

Araghchi and Jaishankar have spoken multiple times over the phone in recent months, focusing on regional developments and the safety of Indian nationals. But this face-to-face meeting carries added weight.

"The timing is significant. Both sides understand that diplomatic channels need to stay open, especially when military rhetoric is high," a person aware of the preparations said, requesting anonymity.

The Iranian minister's itinerary also includes interactions with other BRICS counterparts, but the bilateral with Jaishankar remains the most closely watched.

India's BRICS presidency

New Delhi assumed the chairmanship of the expanded BRICS grouping on January 1, taking over from Brazil. This is India's fourth time leading the bloc, having previously hosted summits in 2012, 2016, and 2021.

The theme for India's 2026 presidency—"Building for Resilience, Innovation, Cooperation and Sustainability"—reflects a people-centric approach that Prime Minister Narendra Modi outlined at the 2025 BRICS Summit in Rio de Janeiro.

The bloc now includes 11 members: Brazil, Russia, India, China, South Africa, Iran, Saudi Arabia, the UAE, Egypt, Ethiopia, and Indonesia.

Lavrov to attend

Russian Foreign Minister Sergey Lavrov will also participate in the Delhi gathering, according to a statement from Moscow. Russian Foreign Ministry spokesperson Maria Zakharova confirmed that discussions would cover global governance, major international issues, and preparations for the 18th BRICS Summit scheduled for September in New Delhi.

Lavrov's presence adds another layer to the diplomacy, given Russia's own interests in West Asian stability and energy markets.

Strategic significance beyond Hormuz

While safe passage through the Strait is the immediate priority, Araghchi's visit is expected to reinforce broader cooperation. The development of Iran's Chabahar Port, which India has been investing in as an alternative trade route to Afghanistan and Central Asia, remains a key pillar of bilateral ties.

Energy connectivity and regional diplomacy are also on the long-term agenda. For now, though, all eyes are on whether the two sides can secure a workable arrangement to keep Indian ships moving through one of the world's most contested waterways.

Iran's Araghchi Arrives in New Delhi Today for BRICS Talks; Hormuz Safe Passage High on Agenda

Iranian Foreign Minister Abbas Araghchi lands in New Delhi this morning for a two-day BRICS Foreign Ministers' Meeting, with bilateral talks expected to focus on securing safe movement for Indian vessels through the Strait of Hormuz amid rising West Asian tensions.

 Strategic Visit Amid Regional Turbulence

Araghchi is scheduled to touch down on Wednesday, 13 May, ahead of the BRICS gathering being hosted by External Affairs Minister S. Jaishankar on May 14 and 15. This marks the Iranian diplomat's first visit to India since the escalation of hostilities involving Tehran, Washington, and Israel earlier this year.

Sources familiar with the matter said the two ministers are likely to sit down on the summit sidelines specifically to address concerns over India-flagged ships and oil tankers navigating the narrow strait. The waterway, a chokepoint for global crude shipments, has become increasingly volatile.

 40-50 India-Bound Vessels Affected

The urgency isn't hypothetical. Initial reports indicate that between 40 and 50 vessels headed for Indian ports remain stranded west of the Hormuz passage. For a country that imports roughly 85 per cent of its oil requirements, any prolonged disruption spells immediate trouble.

Officials point out that New Delhi is walking a tightrope—protecting energy security while avoiding entanglement in a conflict that shows no signs of cooling. Araghchi and Jaishankar have already held several telephone conversations in recent weeks, focusing on the safety of Indian nationals and the uninterrupted movement of commercial shipping.

Lavrov Also in Attendance

Russia's Foreign Minister Sergey Lavrov will also participate in the Delhi meeting, according to the Russian foreign ministry. Spokesperson Maria Zakharova confirmed that discussions will cover global governance, pressing international issues, and preparations for the 18th BRICS Summit scheduled for September in New Delhi.

India's BRICS Presidency

This is India's fourth time leading the BRICS grouping, having previously hosted summits in 2012, 2016, and 2021. The theme for New Delhi's 2026 presidency—"Building for Resilience, Innovation, Cooperation and Sustainability"—takes forward a people-centric approach articulated by Prime Minister Narendra Modi at the 2025 Rio Summit.

The expanded bloc now includes Brazil, Russia, India, China, South Africa, Iran, Saudi Arabia, UAE, Egypt, Ethiopia, and Indonesia.

Chabahar Port, Wider Ties on Table

Beyond the immediate crisis management, Araghchi's visit is expected to reinforce broader India-Iran cooperation. The development of Chabahar Port—a strategic project that gives New Delhi an alternative trade route bypassing Pakistan—remains a priority. Energy linkages and regional diplomacy will also feature.

With tensions showing no signs of easing, both sides recognise that maintaining secure sea lanes isn't just a bilateral concern but a matter of global trade stability. Araghchi's trip, while brief, signals that diplomatic channels remain open even as warships patrol contested waters.

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.