The Israel-Iran war has entered the seventh day as the Islamic Republic is fighting against the military leaders of US and Israel. The Middle east war cries have also echoed in India and the country is gripped with fear over oil and gas shortage.
The Middle east war impact on India is discernible as the oil and gas prices soared in no time. Reportedly, India had in 2025, sourced roughly $70 billion crude oil and petroleum. The logistical gap due to the shutting down of the Strait of Hormuz has made the task more cumbersome.
India is reliant on the Middle east countries for oil and gas namely LNG, LPG and fertilisers. The fuel supply chain disruption will disrupt the cement, aluminum and power generation. The fertilizer shortage risk will result in the rising food prices and the subsidy burden on the government.
The Iran war has also disrupted the diamond and jewellery sectors. India also imported other industrial raw materials like plastic pipes, consumer goods, plastic pipes which would create a production gap and severely impact the Indian Economy.
New Delhi is also dependent for critical minerals viz Limestone, Sulphur, gypsum. They find use in the cement, fertilisers, chemicals and construction industries. The logistics snarls due to the stalling of the Strait of Hormuz have made the transportation volatile for metals like copper.
It is pertinent to note that, the Indian equities went down about 1.8% with the ongoing war. The war badly hit refineries resulting in Brent crude up roughly to 6%. As India is heavily dependent on these imports, the companies are likely to sell off risky assets.
Moreover, US targeting the Iranian warship, IRIS Dena, just 44 nautical miles off (81 km) southern Sri Lanka, en route, the naval drills hosted by India in Exercise Milan, has only escalated the already tense situation. Post the torpedo attack on Iranian ship, the ceasefire seems almost non-negotiable.
Read more at Industry Odisha: Prime Minister Narendra Modi on 2-day visit to Israel, to hold talks with Netanyahu on key aspects
