India is set to benefit from a US-Iran peace deal, which will ease oil prices and provide relief to the country's economy. The deal, brokered by Pakistan and Qatar, will end the US blockade of Iranian ports and reopen the Strait of Hormuz, a vital waterway used to transport almost half of India's oil imports.
Prime Minister Narendra Modi welcomed the peace deal, emphasizing the need to restore peace and stability in West Asia and ensure unimpeded commerce. Shipping firms are watching developments with caution, as experts say the restoration of normal traffic through the Strait of Hormuz can take weeks or even months.
For India, which relies heavily on West Asia for energy supplies, the deal promises relief from high oil and gas prices, pressure on the rupee, and inflation risks. Experts say the conflict exposed India's over-dependence on West Asia and forced refiners to seek alternative supplies from distant markets.
A long-term deal between Iran and the US, including the ending of American sanctions on Iranian oil sales, will be crucial for New Delhi to resume energy purchases from Tehran and continue with the development of Iran's Chabahar port.
