Iran-Israel conflict threatens India's West Asian trade

India Jun 22, 2025

India's trade with West Asia is feeling the heat as tensions rise between Iran and Israel.
Experts say recent US airstrikes and the risk of military escalation could push oil prices up and make shipping more expensive, especially through busy routes like the Strait of Hormuz.
This puts a strain on business with countries like Iran, Israel, and Iraq.

Perishable goods at risk due to shipping delays

Indian exporters are already facing challenges—blockades or higher costs could disrupt over $8.6 billion in exports, according to trade analysts.
Perishable goods like rice and bananas are at particular risk due to rising insurance costs and shipping delays.
With complex geopolitics in play, India has to carefully balance its trade ties in the region while keeping inflation in check.