PM Modi said the agreement could help restore regional stability, safeguard global trade routes
Prime Minister Narendra Modi on Monday welcomed the peace understanding reached between the United States and Iran, reiterating India’s long-standing position that dialogue and diplomacy remain the best path to resolving conflicts in West Asia.
In a post on X, the Prime Minister said the agreement marked a positive step towards ending a conflict that had disrupted global markets, impacted supply chains and resulted in the loss of lives across several countries.
“I welcome the understanding reached between the United States and Iran on ending the conflict in West Asia, which has caused serious economic disruption across the world and led to loss of life in many countries,” PM Modi said.
The Prime Minister also expressed hope that the agreement would contribute to restoring freedom of navigation and commerce in the region, particularly through the Strait of Hormuz, one of the world’s most critical energy and trade corridors.
He added that India looks forward to ongoing discussions addressing the remaining issues and hopes they culminate in a sustainable and long-term agreement.
Peace deal offers hope after months of conflict
The US-Iran conflict, which began on February 28, triggered widespread geopolitical uncertainty and disrupted global energy markets. Following months of hostilities and intense diplomatic negotiations, Washington and Tehran have now agreed to a peace framework aimed at ending the conflict.
The agreement, expected to be formally signed on June 19, is set to halt hostilities and facilitate the reopening of the Strait of Hormuz, a development closely watched by economies dependent on global energy supplies.
India has consistently maintained that maritime trade routes must remain open and secure, while advocating diplomatic engagement as the preferred route for conflict resolution. Over the past several months, PM Modi also held discussions with multiple world leaders, reiterating India’s support for peace and regional stability.
Markets react positively
The announcement had an immediate impact on global markets. Brent crude prices fell sharply, easing concerns over energy supply disruptions, while Indian equity markets opened strongly higher.
The Sensex surged over 1,100 points in early trade, while the Nifty climbed significantly as investor sentiment improved following signs of de-escalation in West Asia. The Indian rupee also strengthened against the US dollar.
However, analysts cautioned that while the agreement has boosted confidence, a complete return to normalcy may take time as markets assess the implementation of the deal and the broader geopolitical outlook.
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