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Escalation costs

Iran's regime change rhetoric and widening conflict reshape risks for India’s energy supplies, diaspora safety and diplomatic choices in the region

Syed Akbaruddin
Published 02.03.26, 07:24 AM

West Asia is no longer in a crisis. It is in a war. The United States of America and Israel struck Iran in what is widely read as a leadership decapitation strike. It culminated in the death of the supreme leader, Ayatollah Ali Khamenei. Iran has retaliated against Israel and struck across the Gulf, hitting US bases and other targets. The conflict is now a credibility trap. The legitimacy of pre-emptive force is contested. What follows will be shaped less by intention than by escalation logic.

The first mistake in such situations is to treat war as an event. War is a process. It is a sequence of decisions taken under pressure, watched live and read by adversaries. Once that sequence starts, restraint stops being a preference. It becomes a political cost.

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What makes this phase extremely dangerous is not only the use of force but also the political frame that accompanies it. Both President Donald Trump and Prime Minister Benjamin Netanyahu have used language that reaches beyond nuclear and missile restriction objectives. Trump urged Iranians to “take over” their government after the strikes. Netanyahu called on Iranians to cast off the “yoke of tyranny”. That is regime-change rhetoric.

Such language, once introduced, alters the meaning of every move that follows. A nuclear bargain can be negotiated technically: enrichment ceilings, stockpile limits, monitoring, sanctions relief. Regime change is not a technical problem. In Tehran, it will be read as an existential project. That reading makes compromise politically toxic. It collapses the bargaining space and hardens the retaliation imperative.

This is the bind. Outside actors tell themselves that added pressure will produce a better deal. The target tells itself that any deal becomes the beginning of the end. When that psychology takes hold, the agreement you wanted becomes unavailable. What remains is a contest over deterrence, survival, and pride.

Regime change is seductive but corrosive in practice. It promises a clean solution to a messy strategic situation. It implies that behaviour is simply the product of a regime’s nature, not the structure of incentives. It tempts outsiders into believing that changing the regime changes the strategic landscape. In reality, regime change multiplies risk. It weakens the credibility of any off-ramp because the target assumes diplomacy is camouflage and restraint is merely the prelude.

There is also a problem of capability. A military campaign can target leaders, damage air defences, hit infrastructure, and degrade specific systems. It cannot redesign Iranian domestic politics on an American or Israeli clock. It cannot guarantee what comes after.

Strikes do not automatically produce concession. Often they produce hardening. They also intensify the search for asymmetric leverage, because Iran’s leadership knows it cannot win a conventional contest with the US. The rational response for the weaker side is not to mirror strength. It is to exploit exposure.

The retaliation map is familiar. Iran does not require conventional parity to impose costs. Its advantage lies in asymmetric retaliation and calibrated disruption. Iran’s proxy networks may activate, widening the conflict. The point is not battlefield victory. It is to make escalation feel uncontrollable, so that every additional strike multiplies uncertainty and cost.

The Strait of Hormuz is not just geography. It is a pricing mechanism. Even a hint of tightening reprices energy, insurance, and shipping behaviour because fear is priced faster than facts. Beyond the strait sits a wider geography of vulnerability, including US bases, Gulf energy infrastructure, and Israel. Once those nodes are in play, the conflict stops being a bilateral contest. It becomes a Gulf risk repricing.

War has begun. The central question is whether conflict can be contained. The language of ‘limited’ war is always the first language spoken, because it reassures global audiences and calms markets. But limited war has a discipline problem. Each strike creates a reply requirement. Each reply creates a pre-emption temptation. In this phase, escalation often happens less as a plan than as a chain reaction.

For India, this is not a distant theatre. It is an economic corridor and a major human concern. Energy exposure is immediate across crude and LNG, fertiliser inputs, aviation fuel, and the inflationary ripple that follows. Logistics exposure follows through freight costs, insurance premia, rerouting, and delivery slippage. Human exposure is constant, through Indian seafarers and the large Indian presence across West Asia. These are economic management and citizen protection issues.

India also holds a strategic advantage that is easy to miss when narratives polarise. India’s strength in West Asia has never been theatrical neutrality. It has been usable relationships. India has strong ties with Israel, quiet channels with Iran, and dense interests across the Gulf. That is not a contradiction. It is a capability. In a region defined by rivalries, the ability to speak across divides is leverage. The objective is to convert access into outcomes that reduce risk to Indians and volatility in the commons on which India depends.

So what should India do?

First, treat West Asia as economic security, not only foreign policy. Track the warning signs: oil prices, risk premiums, freight spikes, air corridor rerouting, delivery slippage, payment frictions.

Second, treat citizen protection as capability. Focus on consular services and diaspora communication. Coordinate with host governments, and keep tiered evacuation and relocation options ready without advertising them. In crises like this, the measure is not how loudly a state speaks. It is how quietly it can move its people to safety.

Third, keep diplomacy interest-based and narrow. Build on India’s stated concern by pressing for de-escalation, avoidance of miscalculation, sea lanes safety, and protection of civilians from retaliation spirals. Quiet competence is needed, not loud slogans.

In West Asia crises, the bill is rarely paid only by the protagonists. It is also paid in India’s import bill and inflation line, in the nerves of Indian seafarers crossing the Gulf, and in the quiet dread of diaspora families living in the shadow of someone else’s war. We pay the costs in more ways than we admit. War generates momentum. Statecraft must supply brakes.

Syed Akbaruddin is a former Indian Permanent Representative to the United Nations and, currently, Dean, Kautilya School of Public Policy

Op-ed The Editorial Board US Government Iran Iran-US Relations Israel
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