“India-UAE Deal: Geopolitics and Energy Shield”, India Narrative, May 25, 2026
“The war in West Asia has roiled global energy markets. The closure of the Strait of Hormuz, a critical maritime chokepoint, has disrupted transportation and business across the region as Iranian strikes hit Gulf states, including the UAE, before a fragile ceasefire last month. This has reminded the world, once again, how fragile global energy security can be. As tensions between the United States and Iran escalated, the narrow and vital shipping channel that carries a large portion of the world’s oil trade has become a zone of risk. For India, the world’s third-largest oil importer, the disruption was immediate and concerning. Supplies from the Gulf dropped sharply, imports fell, and the possibility of higher fuel and cooking gas prices loomed large over households and industry alike.
It is against this backdrop that India’s latest strategic agreements with the United Arab Emirates during Prime Minister Narendra Modi’s Abu Dhabi visit on May 15, 2026, may ultimately be remembered not merely as another diplomatic success but as one of the most consequential geopolitical energy arrangements India has pursued in the post-pandemic era. At a time when global oil markets are rattled by fears of a wider escalation of Iran-United States tensions, attacks around the Gulf region, and uncertainty surrounding the Strait of Hormuz, India has moved decisively to secure both energy stability and strategic depth. The agreements signed with Abu Dhabi on strategic petroleum reserves, long-term LPG supplies, defence cooperation, and a reported $5 billion UAE investment into India’s infrastructure and energy sectors reflect a mature and pragmatic approach to energy diplomacy. In an era when energy has become a tool of geopolitical leverage, such partnerships are not luxuries but necessities.
India today imports nearly 85% of its crude oil requirements and over 50% of its natural gas needs, and consumes around 5 to 5.5 million barrels of crude oil per day. Roughly half of this oil passes through the Strait of Hormuz, and thus, India has been among the hardest hit by the resulting energy crisis. Herein lies the significance of partnering with the Gulf nation, along with its geographical proximity…….”
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