US-Iran War shadow over BRICS Summit? Can host India bridge divisions in the Middle East?
An ongoing conflict involving the United States, Israel, and Iran, and its effects on shipping through the Strait of Hormuz, formed a backdrop to a multilateral summit hosted in India.
Questions were raised over whether the summit host could help bridge divisions among key West Asian and global actors given India's stakes in the region.
India's substantial reliance on the region for energy imports, trade, and its overseas diaspora was cited as the reason for its exposure to any prolonged regional disruption.
Analysts flagged risks of a higher import bill, added inflationary pressure, and broader complications for India's economic outlook if the disruption persists.
The Strait of Hormuz — Global Energy Chokepoint
The Strait of Hormuz is the narrow waterway between Iran and Oman connecting the Persian Gulf to the Arabian Sea and the Indian Ocean, through which a large share of the world's seaborne crude oil and liquefied natural gas (LNG) transits. Its status as an irreplaceable "chokepoint" gives disruptions there outsized global economic significance, distinguishing it from other maritime chokepoints such as the Strait of Malacca (Indian Ocean-Pacific trade) or the Suez Canal (Europe-Asia trade).
The disruption to Hormuz shipping is the direct mechanism by which the West Asia conflict threatens India's economy, making the strait's stability a core Indian strategic interest independent of the summit itself.
India's Energy Security and Crude Oil Import Dependence
India imports roughly 85-88% of its crude oil requirement, making energy security a central pillar of its foreign and economic policy. Since 2022, India significantly diversified its crude sourcing towards discounted Russian oil, partly insulating it from Gulf-specific disruptions, though Gulf/West Asian supply and shipping routes (including Hormuz-dependent flows) remain structurally important.
The article's warning of a "higher import bill" and "inflationary pressures" reflects this direct transmission channel — a Hormuz-linked oil price spike raises India's import bill, weakens the rupee via a wider current account deficit, and feeds into retail inflation that the RBI's monetary policy has to respond to.
India's Position in West Asia — Balancing Multiple Relationships
India maintains simultaneous strategic partnerships with parties on different sides of West Asian fault lines — including Israel, the Gulf Arab states, and Iran — a balancing approach often described as India's "de-hyphenated" West Asia policy, distinct from a bloc-based alignment.
Key Details
- India-Israel ties were upgraded to full diplomatic relations in 1992; India also maintains long-standing developmental and connectivity cooperation with Iran, notably at Chabahar Port.
- Chabahar Port (Iran) is a key node in India's International North-South Transport Corridor (INSTC) strategy, offering India connectivity to Central Asia and Afghanistan bypassing Pakistan.
- India has historically abstained from formal military blocs in West Asia and has instead pursued the "Link West" policy of deepening economic and connectivity ties (I2U2 grouping with Israel, UAE, and the US; India-Middle East-Europe Economic Corridor, IMEC, announced at the 2023 G20 Summit).
- As a state with working relationships across the conflict's key parties (US, Iran, Gulf states), India is occasionally cited in diplomatic commentary as being positioned for a limited facilitation or bridging role, though it has no formal mediatory mandate in the conflict.
The question of whether India can "bridge divisions" reflects this de-hyphenated posture — India's simultaneous, functioning relationships with Iran, Gulf states, Israel, and the US are precisely what generate such expectations, even though India has not taken on a formal mediation role.
- Strait of Hormuz disruption linked to the 2026 Iran war: began following strikes on 28 February 2026; IEA has called it the largest oil-supply disruption in global market history.
- Share of global oil supply transiting Hormuz: approximately 20%, alongside major LNG volumes.
- India's crude oil import dependence: roughly 85-88% of domestic requirement.
- India's Strategic Petroleum Reserves: located at Vishakhapatnam, Mangalore, and Padur (managed by ISPRL).
- RBI flexible inflation target: 4% (+/- 2%), statutory basis under RBI Act Section 45ZA (since 2016).
- Chabahar Port (Iran) is a key link in India's INSTC connectivity strategy to Central Asia, bypassing Pakistan.
- India-Israel diplomatic relations established: 1992.