What Happened
- Prime Minister Narendra Modi spoke with UAE President Sheikh Mohamed bin Zayed Al Nahyan, with both leaders agreeing on the critical importance of ensuring safe and free navigation through the Strait of Hormuz.
- The conversation comes against the backdrop of heightened regional tensions in the Persian Gulf, which have raised concerns about disruption to vital energy and commercial shipping routes.
- India's LPG carriers Shivalik and Nanda Devi had recently navigated the Strait of Hormuz safely, carrying critical energy supplies to India.
- The bilateral engagement reflects the depth of the India-UAE Comprehensive Economic Partnership Agreement (CEPA), which has made UAE one of India's most important trade partners.
- India has strong interests in Hormuz freedom of navigation given that approximately 40% of its crude oil imports and nearly 90% of its LPG imports transit this chokepoint.
Static Topic Bridges
The Strait of Hormuz: World's Most Critical Energy Chokepoint
The Strait of Hormuz is a narrow waterway between Iran and Oman connecting the Persian Gulf with the Gulf of Oman and the Arabian Sea. Its strategic significance derives from the concentration of energy-exporting nations — Saudi Arabia, Iran, Iraq, Kuwait, UAE, Qatar, Bahrain — whose exports are almost entirely dependent on this single corridor.
- The strait is approximately 167 km long and narrows to 55 km at its narrowest point; shipping lanes are only 3.2 km wide in each direction.
- In 2024, oil flow through the strait averaged 20 million barrels per day (b/d), equivalent to about 20% of global petroleum liquids consumption.
- More than one-quarter of total global seaborne oil trade transited the Strait of Hormuz in 2024-25.
- Approximately one-fifth of global LNG trade also transits Hormuz, primarily from Qatar.
- 84% of crude oil and condensate moving through the strait goes to Asian markets.
- There is no viable alternative route for large volumes of Persian Gulf oil if the strait is closed.
Connection to this news: India's diplomatic engagement to keep Hormuz open directly serves its energy security interests — any blockade would immediately disrupt India's crude oil and LPG supply chains.
India's Energy Security Dependence on the Persian Gulf
India is the world's third-largest oil importer and consumer, with the Gulf region supplying the bulk of its hydrocarbon needs. This structural dependence makes the security of Persian Gulf sea lanes a first-order national security issue for India.
- Approximately 40% of India's crude oil imports pass through the Strait of Hormuz; however, India has diversified so that 70% of crude now comes from outside the strait (Russia, US, Africa).
- India imports about 60% of its LPG consumption, of which ~90% comes through the Strait of Hormuz — making LPG the most vulnerable energy commodity.
- As of March 2026, 28 Indian-flagged vessels with 778 Indian seafarers were operating in the Persian Gulf region.
- The Indian Navy's Operation Sankalp (launched 2019) provides dedicated escort and surveillance for Indian-flagged merchant vessels in the Gulf of Oman and the North Arabian Sea.
- India has a 24-hour Maritime Operations Centre monitoring vessel movements and coordinating assistance.
Connection to this news: India's public salutation of its merchant mariners navigating Hormuz and PM Modi's direct engagement with UAE reflect a coordinated state response to energy security risk in real time.
India-UAE Comprehensive Economic Partnership Agreement (CEPA)
The India-UAE CEPA, signed on 18 February 2022 and operative from 1 May 2022, is India's fastest-negotiated free trade agreement and a cornerstone of its Gulf diplomacy. It makes the economic pillar of the relationship formal and legally binding, elevating India-UAE ties beyond the traditional labour/remittance-based relationship.
- UAE eliminated duties on 97.4% of its tariff lines (covering 99% of imports from India); India obtained immediate duty elimination on over 80% of its tariff lines covering 90% of exports by value.
- The CEPA covers 11,908 Indian tariff lines and 7,581 UAE tariff lines; it includes 11 service sectors and 100+ sub-sectors.
- Bilateral non-oil trade reached approximately USD 68 billion post-CEPA, with total bilateral trade crossing USD 100 billion.
- FDI from UAE into India grew by nearly 75% post-CEPA.
- The UAE is home to over 3.5 million Indian nationals — the largest Indian diaspora concentration globally — making consular and bilateral relations especially sensitive.
Connection to this news: The Modi-UAE presidential call on Hormuz navigation reflects not just geopolitical convergence but also the economic integration that makes maritime security a shared strategic interest for both nations.
Key Facts & Data
- Strait of Hormuz: ~167 km long, narrows to 55 km; shipping lanes 3.2 km wide in each direction.
- 20 million barrels/day of oil transited Hormuz in 2024 (~20% of global petroleum consumption).
- ~90% of India's LPG imports and ~40% of crude oil imports pass through Hormuz.
- India-UAE CEPA signed: 18 February 2022; operative from: 1 May 2022.
- India-UAE bilateral trade: exceeded USD 100 billion post-CEPA.
- Indian diaspora in UAE: over 3.5 million (largest globally).
- Indian Navy's Operation Sankalp — Gulf escort mission, launched 2019.