Archive · 23 Jun 2025
Iran-Israel Conflict May Threaten $46 Billion in Trade
The conflict between Iran and Israel is causing problems for India's trade with the Middle East.
Trade worth about $46 billion is at risk.
Shipping costs have gone up, which will make goods more expensive.
While direct trade with Iran and Israel isn't huge, a bigger problem could arise with other countries in the region.
If the Strait of Hormuz closes, it might affect oil prices, but India has other sources for oil and gas.
The main concern is that increased costs could hurt India's economy.
Conflict escalation threatens $46 billion in Indian trade with the Middle East.
Freight charges have increased by 15-20% due to the conflict.
India's trade with Iran is $1.2 billion in exports and $441.8 million in imports.
Wider regional escalation could impact trade with Iraq, Jordan, Lebanon, and Syria.
Closure of the Strait of Hormuz could impact crude oil prices.
- Who
- Indian exporters and importers, along with the broader Indian economy.
- What
- The Iran-Israel conflict threatens $46 billion in trade with the Middle East, driving up freight charges and impacting the Indian economy.
- When
- Currently, with immediate impacts felt through increased freight charges.
- Where
- Middle East, specifically impacting trade with countries like Iraq, Jordan, Lebanon, and Syria.
- Why
- Due to increased freight charges, potential disruptions to the Strait of Hormuz and the overall impact of the conflict on trade routes and insurance.
FIEO
Oil Buyers
Crude Supply
FIEO
India has diversified its crude oil and gas supply chain, so closure of the Strait of Hormuz may not significantly impact availability.
Oil Buyers
Closure of the Strait of Hormuz could impact crude oil prices.
- Affected Trade Value
- $46 billion (estimated)
- Freight Increase
- 15-20%
- India's Exports to Iran
- $1.2 billion
- India's Imports from Iran
- $441.8 million
- Potential Strait of Hormuz Impact
- Could affect crude oil prices
Sources
Consumer durable makers hit as freight costs spike on Iran-Israel conflict
Exporters may use other routes if Iran blocks Strait of Hormuz
Consumer durable makers hit as freight costs spike on Iran-Israel conflict
Why Is 1 Lakh Tonne Of Indian Basmati Rice Stranded At Ports?
Iran-Israel conflict: Rice exporters in India stare at major disruptions, payment delays
Iran, Israel conflict may have short-term impact on goods demand in Gulf region: FIEO
Strait of Hormuz closure: Two-fifths of India’s crude imports at risk
Hormuz Blockade Threatens Energy Security Of Asia's Largest Economies
India Inc on edge as war in West Asia escalates
Basmati Rice Stranded At Gujarat Ports
