Iran Rejects Claims of Allowing Indian Tankers Through Strait of Hormuz; Talks Still Underway, Says Jaishankar

Iran has categorically denied reports suggesting it gave special permission for India-flagged oil tankers to pass through the Strait of Hormuz, dismissing the claims as unfounded amid the ongoing conflict that has choked the vital shipping lane since late February.

The controversy erupted yesterday when several Indian news outlets reported that Tehran had quietly agreed to let Indian vessels transit the strait following a telephone conversation between External Affairs Minister S. Jaishankar and Iranian Foreign Minister Abbas Araghchi.

An Indian government source, speaking anonymously to Reuters, stated: “Iran will allow India-flagged tankers to transit the Strait of Hormuz, through which 40 percent of India’s crude imports pass.” The source pointed to the recent safe passage of two India-flagged ships, Pushpak and Parimal, as proof of the arrangement, while noting that vessels tied to the United States, Europe or Israel were still being blocked.

Tehran moved quickly to shoot down the story. An Iranian source told Reuters the matter was “sensitive” and no such deal had been reached. Another contact in Tehran, quoted by NDTV, was blunt: “No, it’s not true.” Iranian state-affiliated media echoed the denial, insisting no exemptions had been granted for Indian-flagged crude carriers.

Oil tankers bombed by Iran

The Strait of Hormuz has seen traffic plummet since the escalation began. Satellite data shows only a handful of commercial vessels crossing in recent weeks, with several tankers coming under drone and projectile attacks. While one Liberia-flagged tanker carrying Saudi crude did reach Mumbai recently (with an Indian captain on board), that does not confirm any broader policy change for India-flagged ships.

India remains heavily exposed. Roughly 40 percent of its crude and 90 percent of its LPG imports normally flow through the strait. At present, about 28 Indian vessels with 778 crew members are stuck in the Persian Gulf, and three Indian sailors have already lost their lives in related incidents, according to shipping sources.

India’s Ministry of External Affairs described early reports of a breakthrough as “premature,” stressing that talks on safe passage and energy security are continuing but no agreement has been finalized.

The closure has slashed global oil flows by an estimated 10–20 million barrels per day, sending prices soaring and unexpectedly boosting revenues for exporters like Russia. For now, the diplomatic back-and-forth has only added to the uncertainty hanging over one of the world’s most critical energy arteries.

When Trump Came for Everyone With Tariffs, China Fought, Europe Flinched, Japan Bowed; India Simply Walked Away

There is a test that powerful countries administer to everyone else every few decades. It is not announced formally. There is no letter, no ceremony, no official notice. The test arrives disguised as a trade policy. You discover you are being tested only by watching how you respond.

Trump administered that test in 2025. The tariffs were the instrument. The real question underneath them was simpler and older: how much humiliation will you absorb to keep America happy?

Every major economy answered differently. The answers were more revealing than any diplomatic communiqué.

China Bled First, Then Negotiated

China did what China always does when cornered. It hit back.

The moment Trump’s tariffs landed, Beijing retaliated, hard, fast, and with surgical precision aimed at the American constituencies that hurt most. Agriculture. Soybeans. Pork. The farmers in Iowa and Kansas who had voted for the man now watching their export markets evaporate. Bilateral tariff rates escalated rapidly until both sides were effectively taxing each other’s goods at 125 per cent, a trade war in everything but name, conducted with the cold efficiency of two countries that understand leverage.

It lasted months. It cost both sides real money. And then, in May 2025, they sat down and cut a deal, tariffs rolled back to ten per cent, a 90-day truce extended in August, formalised for a full year by November.

China did not get everything it wanted. But it negotiated from a position of demonstrated willingness to inflict pain. Washington knew, going into those talks, that Beijing had already shown it could make the phone ring in congressional offices across the Farm Belt. That knowledge shaped every sentence of the agreement.

You do not get a good deal by being easy to ignore.

Canada Went Loud, Then Went Quiet

Canada’s response was emotional, immediate, and very Canadian, which is to say it was righteous, noisy, and ultimately pragmatic.

Within hours of Trump’s announcement, Prime Minister Trudeau slapped 25 per cent retaliatory tariffs on $155 billion worth of American goods. Ontario pulled every bottle of American alcohol from government-run liquor shelves. Provincial premiers held press conferences. The phrase “economic sovereignty” appeared in Canadian newspapers approximately ten thousand times in a single week.

Then, by June, Canada paused further retaliation and entered negotiations. The shelves were quietly restocked. The trade talks ground on behind closed doors, away from the cameras that had captured all the initial fury.

Canada had made its point. It had shown it was not a pushover. It had then returned to the business of being America’s largest trading partner and closest neighbour, because geography and economics do not pause for diplomatic theatre.

The noise was genuine. So was the accommodation that followed. Canada fought for its dignity and then negotiated for its interests. Both things can be true simultaneously.

Europe Built Its Weapons and Never Used Them

The European Union spent much of 2025 in a state that can only be described as armed paralysis.

Brussels prepared retaliatory lists covering nearly €72 billion of American goods. It drafted legislation activating the Anti-Coercion Instrument — a legal mechanism designed specifically for moments like this one. It threatened to go after American services, American tech platforms, American financial firms operating within EU borders. The paperwork was meticulous. The political will was not.

Europe blinked. Repeatedly. Quietly. Without ever formally announcing that it had blinked.

The reasons were not difficult to identify. European economies depend on American markets to a degree that makes genuine trade war genuinely painful. And Europe’s dependence on Washington’s military support for Ukraine, a war being fought on European soil, paid for partly with American weapons, meant that Brussels could not afford to turn a trade dispute into an alliance crisis. Trump knew this. He had always known it. The tariffs on Europe were, in part, a test of exactly that dependency.

Europe failed the test by passing on the opportunity to take it. It armed itself thoroughly and then stood very still, hoping the moment would pass.

It mostly did. The cost was invisible but real, the credibility of the threat had been spent without anything to show for it.

Japan Bent the Knee and Got a Discount

Japan’s response was, in historical context, entirely unsurprising. It notified the World Trade Organisation of its intent to suspend concessions on steel, aluminium, automobiles and parts. It made the appropriate official noises. Then it negotiated.

Tokyo’s instinct, refined across a century and a half of managing the American relationship, through gunboat diplomacy and occupation and Nixon’s triple shocks and Bush’s dinner table incident, is always to find the accommodation rather than force the confrontation. Japan reached a trade agreement setting tariffs on its goods, including automobiles, at 15 per cent. Significantly below the 25 per cent that had been threatened. Meaningfully better than nothing.

Japan conceded. Japan got a discount. Japan went home.

There is no contempt in that observation. Japan’s circumstances, 54,000 American troops on its soil, an American-authored pacifist constitution embedded in its foundational law, a security architecture built entirely around the US-Japan alliance, leave Tokyo with genuinely limited room to manoeuvre. Japan knows this. Washington knows Japan knows this. The discount was the acknowledgement that Japan had been a cooperative subject.

A discount is not the same as respect. But it is what cooperative subjects receive.

Brazil Made Speeches

Brazil’s President Lula gave several impassioned addresses about sovereignty, fairness, the rights of developing nations, and the injustice of a global trading system designed by the powerful for the powerful. The speeches were good. They were well-delivered. They contained several genuinely quotable passages.

Brazil did not fire a single retaliatory shot.

Not one.

It evaluated potential measures. It confirmed willingness to negotiate. It reserved its position. It talked loudly, at length, and carried nothing at all.

And Then There Comes India

India did not retaliate. It did not make speeches. It did not prepare retaliatory lists it never used or schedule press conferences to announce tariffs it never imposed.

It filed a WTO challenge, a legal mechanism, quiet and procedural, that signalled disagreement without escalation. It absorbed the blow. And then it got on with its own business, which turned out to be rather more interesting than anything Washington had planned for it.

When Trump publicly claimed credit for mediating the India-Pakistan ceasefire after the May 2025 conflict, India rejected the claim flatly. No US role in the military negotiations, New Delhi said. Full stop. No diplomatic softening. No grateful hedging.

When Trump claimed India had agreed to slash its duties to zero, purchase $500 billion in American goods, and stop buying Russian oil entirely, Indian authorities confirmed none of it. Oxford Economics described the claims as unrealistic. India said nothing publicly and kept buying Russian oil, which it had been doing all along, which it continued doing through February 2026, and for which it eventually received a waiver from the very Treasury Department that had spent months punishing it for exactly this behaviour.

When Trump intensified outreach to Pakistan, even as he was hitting India with 50 per cent tariffs, India noted the irony and said nothing.

When the EU came calling, India signed what European Commission President Ursula von der Leyen called the “mother of all deals” — a trade agreement delivering an estimated €30 billion in export gains for both sides, accompanied by a defence pact. Modi then signalled warming relations with China. Precisely the strategic drift that Washington’s tariff pressure had been designed to prevent was happening, visibly, in full public view.

India’s exports to the US dipped 12 per cent in the final quarter of 2025. India’s economy grew 8.2 per cent in the same period, driven by its domestic market, which is large enough to not need Washington’s permission to function.

The tariff eventually came down to 18 per cent in the February 2026 truce. Trump announced it as a triumph. India accepted it as a correction.

What the Answers Tell You

China showed that if you make the cost of the tariff high enough, Washington will negotiate. Canada showed that you can be angry and practical simultaneously. Europe showed that a threat only works if you are willing to pull the trigger. Japan showed that a century of accommodation produces a discount, not dignity. Brazil showed that rhetoric unaccompanied by action is indistinguishable from silence.

India showed something different. It showed that a country large enough, confident enough, and strategically patient enough does not need to choose between fighting and submitting. It can simply decline to play on those terms, grow its economy, sign deals with other partners, wait for the logic of geography and demography to reassert itself, and let Washington eventually arrive at the conclusion India had been sitting on all along.

Trump came for India with tariffs, public insults, selective punishment, and demands that India manage its energy policy according to American geopolitical convenience. India filed a WTO complaint, kept buying Russian oil, grew at 8.2 per cent, signed a landmark deal with Europe, and waited.

China fought. Canada shouted. Europe trembled. Japan bowed. Brazil talked.

India walked away.

And Washington eventually followed when it conceded Russian oil for India amid Iran war.

UK Relaxes Visa for Businessmen, Modi Pitches for Students Too

Post-Brexit, United Kingdom is opening up to Indian businessmen announcing for the first time a very easy process visa under its "Registered Traveller Scheme" but she chose to remain silent on Indian Prime Minister Narendra Modi’s request to provide "greater mobility" for students and researchers.

Speaking at the India-UK Tech Summit organised by CII, Theresa May, who was instrumental in tightening the visa regime earlier, said: "Indian nationals who frequently come to the UK and to fuel growth in both our countries, the entry process will become significantly easier." It means the businesses will have to fill fewer forms now to enter the EU-EEA (European Economic Area) passport regime and swifter passage through British airports.

"In short, more opportunities for Britain and India and a clear message that Britain is very much open for business… It is crucial that those who do need to travel between our countries for business can do so, that is the reason why when I was Home Secretary, I made visa process for Indians much easier," May said.

She pointed out that India now has best visa services and the same-day visa delivery system. She said that the UK government is listening to the pleas made by Indian businessmen. "Listening to the fact that there are many people from India who are to bring their skill, ideas, businesses to Britain for the good of your economy and ours," she added.

Indian Prime Minister Narendra Modi, in his address at the India-UK Tech Summit 2016, recalled his visit to the UK last November when it ws decided to commemorate 2016 the ‘India-UK Year of Education, Research and Innovation’ and asked for more visas to Indian students and scholars.

"Even though the quantum of bilateral trade has remained at the same level for the past five years our investments in both directions have been robust. India is the 3rd largest investor in UK, and UK is the largest G20 investor in India. Both countries support large numbers of jobs in each other’s economies," he noted.

As India will soon have over a billion phone connections, an urban tele-density of around 154%, 350 million internet users, nearly 1 lakh Internet-Connected villages, the growth story offers an excellent success story, he said.