US Secretary Rubio's Visit To India Crucial To Tackle Iran War Energy Shock, Rupee Slide

2026-05-20 02:32:44

(MENAFN- Khaleej Times) The visit by US Secretary of State Marco Rubio to India later this month comes at a crucial time for both countries, especially with the Iran crisis continuing to unfold and posing formidable challenges to them.

India is facing a massive crisis because of the dramatic impact on oil and gas supplies, which have not only stalled its economic growth parameters, but also threatens the livelihood of millions of people across the country.

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The war is also having devastating impact on the US, with soaring energy costs, and a sharp slowing down of the economy. Consumers in the US are facing enormous challenges with the average price of gasoline and diesel soaring from $3.5 and $2.75 respectively in January 2026, to $5.65 and $4.12 now.

For India, the problem is worse as it imports 90 per cent of its oil and 50 per cent of its gas. Chief economic adviser V. Anantha Nageswaran warned managing the current account and preventing currency depreciation are crucial for the country.

Another major concern is foreign portfolio outflows in the country, with investors having pulled out $20 billion since the end of February when the war began, are hurting the country's capital account.

The Indian rupee has tumbled to a record low of 96.9 against the US dollar on Wednesday, resulting in enormous challenges on the domestic front. The currency has trimmed more than 5.5 per cent since the start of the US-Israel-Iran war in end February. There is growing anxiety because of“India's rising import bill, worsening inflation trajectory, and potential slowdown in economic growth at a time when the macroeconomic environment is already under severe strain,” Ponmudi R, CEO, Enrich Money, told the media.

In view of these recent developments, Rubio's visit to India from May 23 to 26 will be crucial at a sensitive moment in global geopolitics, and India-US trade negotiations entering a crucial phase.

For India, which imports a significant portion of its crude oil requirements, any prolonged disruption in the Gulf directly impacts inflation, fuel prices and economic stability. The ongoing tensions around the Strait of Hormuz have added urgency to India-US discussions on energy cooperation and strategic reserves.

US ambassador to Delhi, Sergio Gor, is looking forward to the Quad foreign ministers meet in Delhi. He posted on X:“The U.S. Embassy in India looks forward to welcoming @SecRubio for his first visit to India, ministerial Quad meetings, high level engagements, and celebrating 250 years of America.” Earlier, he had told the media that the US has“some incredible deals that we're hoping to finalise in time for his visit at the end of May.”

Gor said India was vitally important to the US.“It's an incredible partner and the President also has an incredible relationship with your Prime Minister,” he told the media.“If you look at Secretary Rubio, he does not travel because he's full-time at the White House also. The fact that he is coming over here shows the level of importance that the United States gives to India.”

The last Quad summit was held in the Wilmington, Delaware, USA, in 2024, as then US President Joe Biden had requested it be held there as his term was coming to an end.

India was to host the 2025 summit, but President Donald Trump's aggressive imposition of tariffs on several countries (including 50 per cent on India), sidelined the event.