Rubio pushes for US power dominance in India as Iran war reshapes global oil flows

Secretary of State Marco Rubio just wrapped up a four-day visit to India with a Quad meeting over the weekend. Energy security was at the forefront of discussions, alongside Indo-Pacific security, trade and supply chain strengthening.

The trip was Rubio’s first visit to the country as Secretary of State and National Security Adviser, and came at a time of strained US-India relations and increased volatility in global energy markets.

Before starting his trip, Rubio said that Washington wants New Delhi to buy American oil and gas.

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“We want to sell them as much energy as they will buy. We want them to be a big part of the portfolio,” Rubio told reporters in Miami last week, adding, “There’s a lot to work with India. They’re a great friend, a great partner.”

India, the world’s second largest oil importer, imports about 88% of its crude oil. More than half of that cargo comes from the Middle East, most of which passes through the Strait of Hormuz. The Iran war has created a major energy crisis for the South Asian nation. And while there are signs of a peace deal emerging, disruptions are expected to continue, deepening New Delhi’s fears about long-term energy security.

India has increasingly sought alternatives and looked to diversify its energy future, prompting broader US-India energy cooperation.

“Secretary Rubio should make it clear that the United States wants to be India’s energy partner of choice. US energy offers India a secure alternative to supply chains that are blurred, exposed by sanctions, Max Meizlish, Research Associate at the Center for the Defense of Democracies’ on Economic and Financial Powers, told FOX Business.

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“But the relationship has to work both ways. India cannot be a strategic energy partner of Washington while Indian firms repeatedly come out of sanctions involving Iranian energy flows, shadow shipping, false origin claims and evasion of Russian sanctions,” he added.

The Iranian flag flies above ships docked in the Strait of Hormuz as the US confronts Iran’s growing use of cryptocurrency. (Majid Saeedi/Getty Images)

India has continued to buy discounted Russian crude, despite sanctions and pressure from Washington to reduce dependence on Moscow’s energy exports. Now, the US hopes to persuade India to buy more oil and liquefied natural gas from America and Venezuela.

This month, Venezuela overtook Saudi Arabia and the United States to become India’s third largest supplier.

During the meeting with Indian Prime Minister Narendra Modi, Rubio emphasized the strategic importance of the US-India partnership and confirmed that US energy products have the potential to diversify India’s energy supply.

In the X text on Saturday, Rubio also said that Delhi has committed to buy 500 billion dollars in American goods in the next five years, focusing on energy, technology and agriculture.

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At the same time, India is trying to achieve long-term energy independence by rapidly expanding nuclear power generation.

Last month, India reached a nuclear milestone when its most advanced reactor, the Prototype Fast Breeder Reactor (PFBR), reached the self-sustaining stage.

Unlike conventional reactors, fast breeder reactors produce more fuel than they use, potentially reducing long-term dependence on foreign fuel sources.

Once fully operational, India will become only the second country after Russia to run a fast breeder reactor.

The Indian-flagged oil tanker Desh Ujaala is pictured in Gulf waters near the Al-Basrah Oil Terminal (ABOT), about 50 kilometers off the coast of the Faw peninsula in southern Iraq, on August 5, 2025. (Hussein Faleh/AFP via Getty Images/Getty Images)

As this happens, New Delhi is also deepening nuclear cooperation with Washington as it seeks foreign investment and advanced technology to rapidly expand its nuclear power sector.

Earlier this month, a 20-member high-level US Executive Nuclear Industry Delegation visited India to explore opportunities for private investment and technology trade in India’s nuclear power market, with discussions focusing on advanced nuclear technology and small modular reactors.

The US ambassador to the country, Sergio Gore, recently praised India’s growing relationship with the US in the energy sector, saying there are “great things” ahead.

India plans to increase its nuclear capacity from 8.8 gigawatts to 100 gigawatts by 2047, creating what officials estimate could be a nearly $300 billion nuclear power market.

The depth of energy ties goes beyond just energy imports.

President Donald Trump recently announced a historic $300 billion refinery deal with India’s Reliance Industries. Under the agreement, a new oil refinery will be built at the Port of Brownsville in Texas. It is slated to be the first major US refinery to be built in 50 years.

Narendra Modi, the prime minister of India, at the headquarters of the Bhartiya Janata Party (BJP) on the eve of election results in New Delhi, India, Tuesday, June 4, 2024. (Prakash Singh/Bloomberg via Getty Images/Getty Images)

As analysts warn that long-term instability involving Iran could continue to shake global oil markets and supply chains, Rubio’s trip highlighted the strategic importance of growing cooperation between Washington and New Delhi.

In Washington, India represents one of the world’s fastest growing energy markets and an important strategic partner in the Indo-Pacific.

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For New Delhi, a deepening relationship with the US offers an opportunity to diversify energy supplies, while reducing the risk of destabilization from the Middle East.

“The goal should be more American power flowing into India and more Iranian and Russian power not being allowed to go through Indian channels,” Meizlish told Fox.