West Asia crisis casts shadow on global economy, India responding with 'full strength': Modi

Addressing BJP workers at the party headquarters, Prime Minister Narendra Modi said the ongoing crisis in West Asia had cast a shadow on the global economy but asserted that India was confronting the challenge with “full strength and resilience.”

VIDEO | Addressing BJP workers at party HQs, PM Modi says, “The ongoing crisis in West Asia has had a negative impact on the entire world. However, India is confronting this challenge with full strength and resilience. These election results have also shown that India stands… pic.twitter.com/jW03b08DF2

— Press Trust of India (@PTI_News) May 4, 2026

Most Gulf bourses closed slightly higher on Monday, supported by limited signs that the West Asia conflict may be resolved.

Meanwhile, Iran warned on Monday that it would consider any US attempt to interfere in the Strait of Hormuz a breach of the Mideast ceasefire, as President Donald Trump said the United States would begin escorting ships through the blocked waterway.

Negotiations between the two countries have been deadlocked since a ceasefire came into effect on April 8, and Iran’s stranglehold on the strategic strait following US-Israeli attacks on Tehran has been a main point of contention.

Trump said Sunday the new maritime operation, which he dubbed “Project Freedom,” was a “humanitarian” gesture for crews aboard the many ships swept up in the blockade and which may be running low on food and other crucial supplies.

“We will use best efforts to get their Ships and Crews safely out of the Strait. In all cases, they said they will not be returning until the area becomes safe for navigation,” Trump said in a Truth Social post, noting operations would begin on Monday.

In response, the head of the Iranian parliament’s national security commission said: “Any American interference in the new maritime regime of the Strait of Hormuz will be considered a violation of the ceasefire.”

By blocking the Strait of Hormuz, Iran has choked off major flows of oil, gas and fertilizer to the world economy, while the United States has imposed a counter-blockade on Iranian ports.

With inputs from agencies