Trump, Modi discuss Hormuz disruption as India faces LNG supply strain
(Bloomberg) -- Indian Prime Minister Narendra Modi said he discussed the Iran war on a call with President Donald Trump, including the conflict’s impact on the Strait of Hormuz, a key route for India’s energy imports.
“Received a call from President Trump and had a useful exchange of views on the situation in West Asia. India supports de-escalation and restoration of peace at the earliest,” Modi said in a social media post on Tuesday.
“Ensuring that the Strait of Hormuz remains open, secure and accessible is essential for the whole world,” he added. “We agreed to stay in touch regarding efforts towards peace and stability.”
The war in the Middle East has cut off flows of crude oil and liquefied natural gas, driving up prices and sparking volatility in global markets. The situation has been particularly acute in India, a major importer of LNG and other petroleum fuels from the region with supply disruptions hitting various industries.
The shortage has disrupted industries including fertilizer and aluminum production as well as semiconductor manufacturing, raising the risk of a prolonged drag on growth.
Modi in an address this week acknowledged those strains, even as he sought to assure Indian businesses and consumers that the country has sufficient supplies to meet domestic demand and that New Delhi was working to ensure safe transit for vessels stranded in the region.
Iran has started charging transit fees on some commercial vessels passing through the strait, highlighting Tehran’s control over crucial maritime channel.
India, which has secured the exit of four vessels carrying liquefied petroleum through Hormuz, said Tuesday that international laws guarantee the right of freedom for navigation through the strait and no one can levy any fee for use of the channel.
U.S. Ambassador to India Sergio Gor earlier Tuesday also addressed the Trump-Modi call, saying in a social media post that the two had discussed “the importance of keeping the Strait of Hormuz open.”
