The escalating 75-day war in West Asia between the United States, Israel, and Iran has effectively shuttered the Strait of Hormuz, forcing immediate shifts in global energy procurement. Amid this maritime disruption, Prime Minister Narendra Modi completed a highly condensed 2.5-hour diplomatic stopover in the United Arab Emirates on May 15 to secure emergency, sovereign-level fuel guarantees.
The bilateral meetings resulted in a finalized Memorandum of Understanding between the Indian Strategic Petroleum Reserves Limited and the Abu Dhabi National Oil Company. A concurrent long-term LPG supply agreement was signed involving the Indian Oil Corporation, stabilizing domestic supply lines as the UAE currently provides nearly 40 percent of India’s LPG requirements.
The rapid negotiation follows immediate domestic economic fallout, as the Strait of Hormuz closure triggered sudden petrol and diesel price hikes of three rupees per litre across India this week. The new crude reserve framework builds upon a foundational 2018 agreement that allowed the UAE to store over 5 million barrels of crude oil at the Mangalore ISPRL facility, marking Abu Dhabi as the first partner in India’s emergency petroleum network.
Beyond immediate energy security, the diplomatic stopover formalized a new Strategic Defense Partnership framework and included plans to build a dedicated ship repair cluster in Vadinar, Gujarat. The UAE also committed to a targeted 5 billion dollar investment package across Indian infrastructure, RBL Bank, and Samman Capital. Modi’s abbreviated two-and-a-half-hour itinerary mirrors a similarly highly focused diplomatic transit made by UAE President Sheikh Mohamed bin Zayed Al Nahyan to India earlier in January.