On June 12, Indian Foreign Minister S. Jaishankar called US Secretary of State Marco Rubio to protest the deaths of three Indian sailors killed in a US strike in the Gulf of Oman on June 9. The sailors were aboard the Palau-flagged tanker Setebello, which Washington claimed violated sanctions on Iran-linked vessels. Rubio’s response was firm, offering no apology or assurance against recurrence. The incident has exposed deep cracks in the US-India relationship, even as both nations publicly maintain a façade of stability.

The Iran war and its aftermath have severely affected India’s economy and politics. Rising crude prices, inflation, and supply disruptions have weakened the rupee and reduced remittances, while foreign investors withdraw capital. Politically, Prime Minister Narendra Modi faces criticism for failing to protect Indian citizens and for overreliance on US ties. Meanwhile, Pakistan’s role in facilitating US-Iran talks has further undermined India’s regional standing.

Despite ongoing defense and technology cooperation, mutual trust has eroded. Washington’s protectionist policies and India’s strategic recalibration toward China signal a shifting balance. Analysts warn that unless mutual respect and parity are restored, the partnership’s foundation may not endure beyond current leadership cycles.