US Pushes Energy Exports to India Amid Iran Conflict

The United States is seeking to expand exports of oil and liquefied natural gas to India to strengthen trade ties and mitigate global supply disruptions. This strategic push follows a war launched by the U.S. and Israel against Iran in February 2026, which resulted in the closure of the Strait of Hormuz and triggered an energy crisis for India.

Secretary of State and National Security Advisor Marco Rubio began a four-day visit to India on May 23, stopping in New Delhi, Kolkata, Agra, and Jaipur. His agenda focuses on energy security, defense cooperation, and meetings with Quad partners to counter Chinese influence in Asia. To help India avoid sanctions while managing its crisis, the U.S. Treasury Department has permitted the purchase of Russian oil.

Trade relations remain a focal point as both nations work toward an interim trade pact and a broader bilateral trade agreement. This follows a period of tension where President Donald Trump imposed punitive tariffs on Indian goods to pressure New Delhi over Russian oil imports, though those tariffs were later reduced from 50% to 18% following a deal with Prime Minister Narendra Modi. Further complications arose after a U.S. Supreme Court ruling led to additional duties under Section 122 of the Trade Act.

U.S. Ambassador Sergio Gor reported that India is receptive to diversifying its energy sources through American imports. Meanwhile, Indian Commerce and Industry Minister Piyush Goyal highlighted over $60 billion in recent American investments, including data center projects from Google and Amazon.