Challenges due to Iran-USA tension: Even though India stopped importing Iranian crude oil after a US ultimatum, the West Asian region remains New Delhi’s largest crude oil supplier, with Iraq, Saudi Arabia, UAE and Kuwait among the largest oil exporters to India. The tension between USA and Iran will not only damage India’s oil supply lines - it imports 84% of its oil needs - but will also raise associated costs, such as the insurance cover for oil tankers.
ASEAN has been the vehicle for India’s expanding partnership with South East Asia, but there is no similar forum in the Middle East. Different nations have different affiliations and India will have to make up the smooth relations with each different one.
Difference: There is ideological, political and religious divisions in India over the Middle East, therefore the realtion is not natural but more of a diplomatic one and hence have long vulnerable and complicated relations.
Instability in the region due to ISIS (Islamic State of Iraq and Syria).
Growing rivalry between the Sunni Arabs and Shia Iran.
