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Diego Garcia is a strategic coral atoll in the Indian Ocean's Chagos Archipelago. Part of the British Indian Ocean Territory, it hosts a major U.S. military base. Its history is marked by the controversial 1970s forced removal of native Chagossians.
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Picture Courtesy: LIVEMINT
Recent geopolitical tensions have escalated sharply following an attempted Intercontinental Ballistic Missile (ICBM) attack by Iran on the joint US-UK military base at Diego Garcia.
Diego Garcia is a coral atoll in the central Indian Ocean, serving as a critical military outpost for the United Kingdom and the United States

Geography and Features
Strategic and Military Significance
Diego Garcia is often called the "unsinkable aircraft carrier" due to its role as a forward-operating base.
The Sovereignty Dispute & 2025 Treaty
Historical Context: In 1965, the UK separated the Chagos Archipelago from Mauritius to form the British Indian Ocean Territory (BIOT).
Displacement: Between 1968 and 1973, the indigenous Chagossian (Ilois) population was forcibly removed to make way for the military base.
ICJ Ruling (2019): The International Court of Justice (ICJ) ruled that the UK's administration was unlawful and that the islands should be returned to Mauritius.
Sovereignty Treaty (2025): The UK and Mauritius signed a landmark treaty where the UK agreed to transfer sovereignty of the Chagos Islands to Mauritius.
Source: LIVEMINT
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PRACTICE QUESTION Q. The Strait of Hormuz, a critical global choke point for energy transit, connects which of the following water bodies? a) Persian Gulf and Gulf of Oman b) Red Sea and Gulf of Aden c) Black Sea and Sea of Marmara d) Mediterranean Sea and Red Sea Answer: a Explanation: The Strait of Hormuz is a strategically vital maritime choke point that serves as the only sea passage from the Persian Gulf to the open ocean. It is located between Iran to the north and Oman (specifically the Musandam Peninsula) and the United Arab Emirates to the south. |
Diego Garcia is a strategically located island in the Indian Ocean functioning as a crucial staging ground for US-UK military operations, strategic bombers, and intelligence. Its extended reach allows for robust force projection across the Middle East, Africa, and the Indo-Pacific.
The Strait of Hormuz is the world’s most important energy transit corridor, facilitating the movement of roughly 25% of all global seaborne oil trade and 20% of global oil consumption. Any disruption here drastically threatens global energy supplies and causes severe oil price volatility.
India imports over 85% of its crude oil, heavily relying on the Middle East. Geopolitical escalations cause crude prices to surge. A sustained $100/barrel oil price widens India’s current account deficit (CAD), imports inflation, disrupts business sentiment, and depreciates the Rupee.
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