Modi tells Trump at G7: Strait of Hormuz vital to global economy
Synopsis
Key Takeaways
Prime Minister Narendra Modi on Wednesday, 17 June held talks with United States President Donald Trump on the sidelines of the G7 Summit in Evian, France, where the two leaders reviewed progress in bilateral cooperation spanning trade, energy, defence, technology, and people-to-people ties. Modi underscored that keeping the Strait of Hormuz open was critical to the stability of the global economy.
Key Developments from the Evian Meeting
During the bilateral, Modi conveyed that India appreciated the steps taken toward restoring peace and stability in West Asia. He specifically flagged the strategic importance of the Strait of Hormuz — a critical chokepoint through which a significant share of the world's seaborne oil passes — and reiterated the need to protect civilians, including seafarers, operating in the region.
The meeting comes at a moment of heightened attention on maritime security in the Persian Gulf, where tensions have periodically disrupted shipping lanes in recent years.
State of India-US Bilateral Ties
The Modi-Trump engagement at Evian reflects what both governments describe as deepening strategic convergence. Bilateral trade between India and the United States has expanded steadily, with the two sides working to resolve outstanding market access disputes and broaden cooperation in emerging technologies, clean energy, and defence production.
Energy security has emerged as a key pillar of the partnership. India has been diversifying its crude oil import sources, and the US has grown into a significant energy supplier to India in recent years. Defence ties have similarly deepened through joint exercises, technology transfer arrangements, and procurement agreements.
Why the Hormuz Signal Matters
India is among the world's largest importers of crude oil, making unhindered maritime trade a matter of direct economic concern. The Strait of Hormuz, which connects the Persian Gulf to the Gulf of Oman, is the transit route for roughly 20% of global oil supplies, according to energy analysts. Any disruption there would have immediate consequences for Indian energy costs and, by extension, domestic inflation.
Notably, India has consistently maintained that regional conflicts must not be allowed to choke global supply chains — a position Modi reiterated directly to Trump at Evian.
What Comes Next
The Evian interaction is expected to feed into ongoing diplomatic and trade negotiations between the two countries. Both sides have indicated intent to further consolidate cooperation across economic growth, regional security, and technology sectors. Formal outcomes from the broader G7 Summit are anticipated in the coming days.