Amid US-Iran tensions and the Hormuz Crisis, India has given new impetus to uranium cooperation with Australia. While this will not immediately reduce petrol and diesel imports, it is considered an important step towards strengthening India’s long-term energy security and reducing its dependence on fossil fuels.
Published: July 9, 2026, 1:15 PM IST
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Major success for Modi govt, THIS country agrees to supply uranium to India (PTI)
The US-Iran war isn’t just a war between two countries. The world has suffered its consequences. The Iran war had the biggest impact on the world’s energy supply, especially in Hormuz. The closure of the Strait of Hormuz caused widespread panic, leading to shortages of everything from petrol and diesel to gas. Hormuz is a crucial route for the global oil and gas trade. Approximately 20% of the world’s crude oil passes through this sea route. India also meets a significant portion of its oil needs from this route. Therefore, when the crisis in Hormuz escalates, India’s concerns also increase. This is why India is now moving towards reducing its dependence on Hormuz in the future. Amid the US-Iran war, India has signed a major deal with Australia. India has signed a deal with Australia for the same uranium that the US and Iran are fighting for.
A major agreement has been reached between India and Australia on uranium. PM Modi and Australian PM Anthony Albanese announced this deal. Both pledged to give new impetus to India-Australia uranium cooperation. This agreement is considered crucial for India’s energy security and nuclear energy program. Strengthening cooperation between India and Australia on uranium supplies will pave the way for expanding the country’s nuclear power capacity.
How will India benefit from this deal?
The biggest benefit of this deal is that India will have a stable and reliable supply of uranium for its nuclear power plants. Australia has one of the world’s largest uranium reserves. This will help India ensure long-term fuel availability. India has already experienced the Iran War and the Hormuz Crisis. India is actively working on alternatives if oil and gas supplies are affected.
India will generate ample electricity
In this context, India is working on a plan to expand nuclear power capacity to meet the rapidly growing electricity demand. Nuclear energy produces less carbon emissions than coal and gas, making it a vital source of clean energy. Availability of sufficient uranium will facilitate the operation and expansion of new nuclear power plants, ensuring adequate electricity generation in the country.
Why this deal is important
There is another important aspect of this deal, which is also strategic. India continues to rely heavily on imported oil and gas for its energy needs. India imports approximately 70 percent of its crude oil, a significant portion of which comes from West Asian countries like Saudi Arabia, Iraq, the UAE, Kuwait, and Qatar. Most oil tankers originating from these countries pass through the Strait of Hormuz. Tensions in West Asia or any disruption in the Strait of Hormuz can impact energy supplies. We have already seen glimpses of this. Expanding the reach of nuclear energy will gradually reduce dependence on fossil fuels for power generation. This will strengthen India’s energy security. Therefore, obtaining uranium from Australia will also resolve the Strait of Hormuz.
Will there be an immediate solution?
However, it’s important to understand that the uranium deal doesn’t mean India’s petrol and diesel imports will immediately decrease. Nuclear energy is primarily used for power generation, while petroleum products will remain needed for transportation and industry. Therefore, this agreement shouldn’t be considered a temporary solution. Rather, it’s a crucial part of India’s long-term energy strategy. India already aims to achieve net-zero emissions.
