Rising Iran-Israel tensions may disrupt India’s oil imports and spike prices of key EXIM commodities.
The escalating conflict between Iran and Israel is emerging as a major concern for India’s foreign trade sector, especially importers and exporters dealing in energy and high-tech goods. With both countries engaging in missile exchanges and the threat of wider regional fallout looming, Indian markets are bracing for potential inflation and trade disruptions.
A key worry is the possible closure of the Strait of Hormuz, a vital maritime route for 20–25% of global crude and LNG shipments. Though India imports limited oil directly from Iran, its reliance on global oil markets—covering 85% of its domestic demand—makes it vulnerable. Crude oil prices have already surged by over 11%, which could impact fuel costs and widen the trade deficit.
India also sources fertilisers, machinery, electronics, and specialty chemicals from Israel and Iran. A prolonged conflict could slow shipments, inflate costs, and affect India’s exports to the region, disrupting established EXIM channels.
Source: The Indian Express, India TV News
