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

India Index founder and CEO Samir Kapadia joins ‘Mornings with Maria’ to break down Rubio’s India trip, the US push to secure critical minerals and counter China and balancing Pakistan ties amid Iran tensions.

Secretary of State Marco Rubio just wrapped 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 resilience.

The trip was Rubio’s first visit to the country as the Secretary of State and National Security Advisor, and came at a moment of delicate U.S.-India relations and heightened volatility in global energy markets.

Before embarking on his trip, Rubio said Washington wants New Delhi to buy more American oil and gas.

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U.S. Secretary of State Marco Rubio and Indian Foreign Minister Subrahmanyam Jaishankar attend a joint press conference after their meeting at the Hyderabad House in New Delhi, India, May 24, 2026.  (Adnan Abidi/Reuters / Reuters)

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

India, the world’s second-largest importer of oil, imports nearly 88% of its crude. More than half of those imports come from the Middle East, much of it transiting the Strait of Hormuz. The Iran war has created a significant energy crisis for the South Asian nation. And even with signs of a peace deal emerging, the disruptions are expected to linger, deepening New Delhi’s fears over long-term energy security.

India has increasingly sought alternative supplies and looked to diversify its energy future, which is accelerating broader U.S.-India energy cooperation.

“Secretary Rubio should make clear that America wants to be India’s energy partner of choice. U.S. energy gives India a secure alternative to opaque, sanctions-exposed supply chains, Max Meizlish, Research Fellow at the Foundation for Defense of Democracies’ Center on Economic and Financial Power, told FOX Business.

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“But the partnership has to run both ways. India cannot be a strategic energy partner for Washington while Indian firms are repeatedly surfacing in sanctions designations involving Iranian energy flows, shadow fleet shipping, falsified origin claims and Russian sanctions evasion,” he added.

An Iranian flag flies above ships anchored in the Strait of Hormuz as the U.S. cracks down on 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 U.S. is hoping to persuade India to purchase 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 crude supplier.

During a meeting with Indian Prime Minister Narendra Modi, Rubio underscored the strategic importance of the U.S.-India partnership and affirmed that U.S. energy products have the potential to diversify India’s energy supply.
 

In an X post on Saturday, Rubio also said that Delhi committed to buying $500 billion in American goods over the next five years, focusing on energy, technology and agriculture.

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

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

Unlike conventional reactors, fast breeder reactors produce more fissile material than they consume, potentially reducing long-term dependence on imported fuel sources.

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

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

As this unfolds, New Delhi is also deepening nuclear cooperation with Washington as it seeks foreign investment and advanced technology to rapidly scale up its atomic energy sector.

Earlier this month, a high-level 20-member U.S. Executive Nuclear Industry Delegation visited India to explore private investment and technology commercialization opportunities in India’s civil nuclear energy market, with discussions focused on advanced nuclear technologies and small modular reactors.

U.S. Ambassador to the country, Sergio Gor, recently praised the growing India-U.S. energy partnership, saying “big things” lie ahead.

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

The deepening energy ties extend beyond energy imports alone.

President Donald Trump recently announced a historic $300 billion refinery agreement with India’s Reliance Industries. Under the deal, a new oil refinery would be constructed at the Port of Brownsville in Texas. It’s set to become the first new major U.S. refinery built in 50 years.

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

With analysts warning that prolonged instability involving Iran could continue rattling global oil markets and supply chains, Rubio’s trip highlighted the growing strategic importance of energy cooperation between Washington and New Delhi.

For Washington, India represents one of the world’s fastest-growing energy markets and a key strategic partner in the Indo-Pacific.

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For New Delhi, deeper ties with the U.S. offer an opportunity to diversify energy supplies, while reducing vulnerability to shocks rippling from the Middle East.

“The goal should be more American energy flowing to India and far less sanctioned Iranian and Russian energy moving through Indian channels,” Meizlish told Fox.

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