Iran-Israel tensions have already impacted air travel as flights between India and West Asian countries have become pricier
Prime Minister Narendra Modi on Thursday held a meeting with the cabinet committee on security (CCS) amidst growing geopolitical tension in West Asia. Modi, along with senior ministers and officials, discussed the consequences of ongoing war in the Middle Eastern Region including its impact on trade and oil imports.
“The West Asia crisis and its possible impact on India were discussed in the meeting, apart from senior ministers, officers were also present. Due to the crisis in West Asia, there is a possibility that the supply of crude oil in India will be affected, and the prices will increase in the international market,” reported ANI, citing sources.
As the fear of an Iran-Israel clash is looming, it continues to pose a threat to India’s crude oil supply and trade, particularly because Iran is one of India’s key oil exporters.
Tensions in West Asia have worsened after Iran’s missile attacks on Israel, which followed Tel Aviv launching a ‘limited’ ground operation in Lebanon targeting Hezbollah, which led to the death of Hezbollah leader Hassan Nasrallah in an airstrike last week.
Additionally, the ongoing tensions have also affected air travel as flights between India and West Asian countries have become pricier. The government on October 2 issued a travel advisory suggesting Indians avoid non-essential travel to Iran.
The ongoing tussle between the West Asian countries has already taken a toll on the Indian tea industry. “If the war widens and engulfes the region, shipping costs will rise as well as insurance premia. The shipping routes may be disrupted as well. But we have to wait and watch how things unfold,” Mohit Agarwal told The Telegraph. Agarwal is a director of Asian Tea & Exports Ltd.
The Federation of Indian Export Organisations (FIEO) has pointed out that the Iran-Israel conflict will significantly impact world trade and the global economy.
“Disruptions could lead to higher shipping costs and delays. Many global supply chains depend on the stability of the region. Conflict could disrupt transportation and logistics, affecting industries ranging from electronics to agriculture,” said Ajay Sahai, FIEO DG. Moreover, if the western world put in sanctions or trade restrictions, it would further complicate the global trade dynamics, he added.