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Rahul Gandhi Warns of India’s Economic Exposure As He Frames Iran-US Conflict As A Superpower Proxy War

Congress leader and Leader of the Opposition Rahul Gandhi on Friday said the ongoing hostilities in the Middle East are not merely a confrontation between the US-Israel alliance and Iran, but a deeper struggle for global dominance involving the United States, China, and Russia. Speaking at an event in Kerala’s Idukki, Gandhi cautioned that India must tread carefully given its heavy dependence on Middle Eastern energy.

“On the surface, it looks like a war between America, Israel and Iran. It’s actually a conflict between America, China and Russia. And the conflict is taking place in Iran, in Ukraine and in other places. But the big conflict is that we have a superpower called the United States and we have a challenger called China,” Gandhi told the gathering.

His remarks came against the backdrop of an ongoing war between Iran and the US-Israel alliance that has been raging since February 28. Over 1,000 people have reportedly been killed in Iran, while missile and drone strikes launched from Tehran have hit US military bases and energy infrastructure across the region including in the UAE, Saudi Arabia, Qatar, Bahrain, and Oman.

The Strait of Hormuz, a critical maritime corridor through which a significant share of the world’s oil and gas supplies passes, remains closed after Iran threatened to target vessels attempting to cross the narrow waterway.

“The Middle East is the centre of energy production in the world. A huge chunk of energy comes from the Middle East… the Strait of Hormuz is blocked. The Americans are attacking Iran. Iranians are attacking the American assets,” Gandhi said.

High Stakes for India’s Economy

Gandhi was direct about the implications for India, arguing that the conflict carries serious domestic consequences. With energy supplies from the Middle East already disrupted, he warned that oil prices are set to climb, which would stoke inflation and drag down economic growth.

“Our energy reliance is on the Middle East. A huge part of oil comes from the Middle East. Prices in India are going to rise. Fuel in India is going to become more expensive. Economic growth in India is going to slow down. And so we have to be very careful about what we do,” he said.

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He also urged the government to establish unambiguous foreign policy positions, warning that strategic ambiguity could prove costly if India finds itself caught between the competing interests of global powers.

“We have to be very clear on what our policy positions are… Because if we don’t and we get caught in the fight, then we’re in serious trouble. China’s on our border and America’s our ally. And they’re getting ready to fight. So we have to be very careful where we are standing,” Gandhi added.

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