India, US to expand energy ties as geopolitics drive supply security

India will boost its energy purchases from the US as it seeks to diversify oil and gas supplies amid heightened geopolitical turbulence, making energy security a key priority, senior officials from both countries said May 23 and 24.

The comments came from US Secretary of State Marco Rubio and Indian Foreign Minister S. Jaishankar during Rubio's visit to India from May 23-26, as Washington and New Delhi agreed to expand bilateral trade ties beyond energy to include other segments -- such as technology and agriculture -- and remain engaged on global strategic issues.

"India has committed to purchasing $500 billion in US goods over the next five years, focusing on energy, technology, and agriculture," Rubio said in a social media post on X during his visit to India.

Rubio held discussions with Indian Prime Minister Narendra Modi to underscore the importance of the US-India relationship. "We discussed the situation in the Middle East and US-India partnership in energy, securing critical supply chains, and collaboration on emerging technologies," Rubio said.

At a separate joint news conference, Jaishankar said that US energy supplies would play a key role in India's energy diversification, as New Delhi seeks suppliers that can deliver fuels consistently over a longer period at affordable prices.

"The United States fits the bill in many respects, and so do some other countries. We will continue to diversify and maintain multiple sources of supply at the most reasonable costs," he said.

"At the end of the day, we have the obligation to our people to provide them with energy at affordable and accessible rates. What we don't want to see is an energy market that's distorted. We don't want the energy market constricted because it has a cost implication. We strongly believe that the energy market should be left to the market," he added.

Rubio said at the same news conference that, "There are only a handful of countries in the world that have both the economic and diplomatic power to be influential on strategic issues from a global perspective, and India is one of them, which is what adds the finishing touches to the importance of the India-US strategic alliance."

According to S&P Global Commodities at Sea, India's crude oil imports from the US averaged 237,000 b/d in 2025, while they averaged 162,000 b/d in the January-March quarter of 2026. In April, it was about 34,000 b/d, with CAS data showing that about 224,000 b/d of US crude is set to arrive in May.

Nuclear energy cooperation

"We devoted some time to nuclear energy cooperation as well," Jaishankar said in a transcript of a joint press conference with Rubio, posted on the foreign ministry website on May 24. "The passage of the Shanti Act has opened up new possibilities."

According to a PIB statement in April, the Act allows private sector participation in setting up a nuclear facility or in carrying out activities for the production, use and disposal of nuclear energy, subject to a license from the central government and safety authorization from the regulatory board, among other provisions.

India is the world's fourth-largest LNG consumer. According to S&P Global Energy CERA data, India's LNG imports from the US in the first half of 2026 are forecast at 1.48 million mt, up 17.5% from the same period in 2025.

"This is an era of de-risking and probably energy more than anything else requires de-risking," Jaishankar said. "So, the way we will deal with the current situation in Hormuz and frankly going forward as well, which is to diversify our energy sources because that is at the heart of our energy security."

Hormuz crisis

Rubio said it was important to ensure trade flow normalization through the Strait of Hormuz at the earliest.

"This is an international waterway. They don't own it. What they are doing now is basically threatening to destroy commercial vessels using an international waterway. That is illegal under any concept of international law that governs us. If we allowed that to become the normal, we would be normalizing an unacceptable status quo and setting a dangerous precedent that could be replicated here in this region and in multiple places around the world," Rubio said.

Crude oil futures declined in mid‑morning Asian trading on May 25, falling to levels last seen in mid-April on signs of a peace deal between the US and Iran, with US President Donald Trump saying on May 23 that a deal had been "largely negotiated."

Negotiations are proceeding "in an orderly and constructive manner, and I have informed my representatives not to rush into a deal in that time is on our side," Trump said on his Truth Social account.

Trump said that the naval blockade on Iran would remain until a nuclear agreement is finalized, as differences over frozen assets and other terms threatened to derail talks between Washington and Tehran.

A dozen vessels left the Strait of Hormuz May 21, of which 75% were outbound, according to a May 22 report from CAS.