By Chintamani Mahapatra
Published on March 17, 2026
The war in the Persian Gulf that started with massive bombings of Iran by the United States and Israel has given birth to a global crisis. While the use of missiles and drones is confined to the Persian Gulf countries housing American military facilities and Israel, the repercussions of the war for the global political economy, the world's energy market and the movement of people for work and tourism have been devastating.
This war is certainly not World War III, but its impact is undoubtedly global, and India, among other countries, has been bearing the brunt of it. The way Prime Minister Narendra Modi has deftly handled the war’s repercussions is justly outstanding.
First of all, the panic that has spread around the world is widely reported and distinctly noticeable in the mainstream media as well as the social media. But there is no alarm in India, and the credit must be given to the Prime Minister and the relevant ministries working under his guidance. Compare this situation to long queues in Vietnam and Bangladesh at patrol stations, the energy famine in Pakistan leading to salary cuts of officials, among other things; Nepal, Sri Lanka, Maldives and Bangladesh seeking India’s help to deal with the energy crisis; South Korea capping the price of oil and many more, and one can see the sea of calm in Indian streets.
Secondly, the Modi government’s deft diplomacy to ensure energy supply to India through the Strait of Hormuz, where Iran has imposed a blockade to prevent movement of ships, and purchasing Russian oil without American sanctions are no mean feats and indubitably diplomatic triumphs. For years, PM Modi managed to buy huge amounts of discounted oil from Russia despite Western criticisms and opposition, and the Biden Administration did not take any punitive measures against India. On the contrary, the Biden presidency quietly appreciated Indian moves due to the contribution of India to the stabilisation of the international energy market through Russian oil purchases.
Biden’s successor, President Donald Trump, had a different take on this issue, and he illegally, unfairly and unjustifiably chose to punish India for buying Russian oil. Its illegality was established by none other than the Supreme Court Justices of the United States. It was unfair because India was punished for trading with Russia, while some of the European allies were doing the same thing without getting warned or penalised by the Trump Administration. It was unjustified because China was the largest buyer of Russian oil, but President Trump chose to single out India for buying Russian oil.
PM Modi’s response to Trump’s punitive tariff was a classic example of passive diplomatic resistance. He did not criticise President Trump, who repeatedly claimed that he was a friend of the Indian Prime Minister. He did not impose any retaliatory tariff on the US imports, unlike China, which followed a tit-for-tat policy. He asked Indian people to try to buy as many homemade goods as possible.
While the Trump Administration officials recurrently asked India to stop buying Russian energy, Prime Minister Modi and his cabinet officials repeatedly clarified that India’s energy policy would be based on what is good for India. The US finally relented, and a trade deal was announced. The moment the Trump White House, in defiance of the Supreme Court’s decision on his tariff policy, adopted alternative methods to raise tariffs under the Super 301 Clause of the US Trade Act of 1974, India yet again quietly refrained from finalising the trade deal, seeking additional negotiations.
When President Trump announced that India could buy Russian oil amidst the US war against Iran, it was as if the Modi magic worked in the realm of diplomacy. Did the Trump Administration take this step for fear of deeper disruption of the international energy market and hence the global political economy? Undoubtedly so. Did the language used by Trump’s spokeswoman—"allowed India to buy Russian oil…"—was deliberate? Certainly yes. But the fact that India’s name was floated first is a clear indication of the success of Indian diplomacy.
The Trump Administration could have made a general statement, which it did subsequently, and not mentioned India at all. China’s name could have been added in view of Trump's upcoming trip to China. The European allies of the US who continued to do energy trade with Russia could have been included. But none of such things happened. India perhaps proved that Trump’s punitive tariff was wrong in its first place. But the Government of India rightly took no credit for it and graciously went ahead with its energy trade with Russia without sanctions.
Third, Israeli and American attacks on Iran took place soon after Prime Minister Modi’s Israel visit and summit meeting with Prime Minister Benjamin Netanyahu. India’s growing closeness with Israel was on display when PM Modi addressed the Israeli Knesset and received repeated applause from the members. Yet, Iran had sent its navy to Vishakhapatnam for participation in the Milan naval exercise. Indian diplomacy in West Asia was based on friendship with all and enmity towards none!
When the US Navy torpedoed the Iranian naval ship in the Indian Ocean amidst the war in the Persian Gulf, many questioned India’s strategic partnership with the United States. But such critics had little to appreciate when Iranian sailors of IRIS Lavan were sheltered in Kochi and were repatriated safely to their country from Kochi! It needs emphasis that the American naval attack on the Iranian ship took place on the High Seas and not on Indian waters. The diplomacy through which Iran allowed a couple of cargo ships bound for India to pass through the Strait of Hormuz is a success that should not be undervalued.
Fourth, Indian diplomacy during any international crisis or armed conflicts requires serious cogitations, careful articulation and planning, when both the conflicting parties are friendly countries; and more so, if the safety of Indian citizens is involved in conflict zones. Millions of Indian workers live in the Persian Gulf that is witnessing extraordinary levels of missile and drone attacks. In addition, a large chunk of Indian energy imports is from this region. Given the civilisational links of India with Israel and Iran and economic and defense partnership with the United States, Indian diplomacy under PM Modi’s leadership seems to have done what best could have been expected.
*The writer is founder chairperson, Kalinga Institute of Indo-Pacific Studies, and Editor, India Quarterly. Views expressed in the above piece are personal and solely those of the author.