Amid rising tensions between Iran and Israel, which threaten trade through the vital Strait of Hormuz—responsible for a fifth of global oil supply—India’s government has directed maritime companies to identify alternative shipping routes. This decision emerged from a June 20 meeting led by Commerce Minister Sunil Barthwal, where industry stakeholders expressed concerns over disrupted shipping lanes due to potential military actions.
Participants warned that escalation could significantly impede critical shipping routes like the Red Sea and the Strait of Hormuz, crucial for oil trade and energy imports into India. Analysts from the Global Trade Research Initiative (GTRI) highlighted that any military disputes could lead to soaring oil prices, increased shipping costs, and higher insurance premiums.
Although the ongoing Iran-Israel conflict, which began on June 13, hasn’t yet directly affected India’s trade or oil supplies, shipping and insurance costs for oil refineries have risen. Industry stakeholders emphasized the need for caution, as further conflict could also complicate already-sensitive routes, particularly in the Red Sea.
The Ministry of Commerce has urged shipping lines to continuously monitor the situation and to seek alternative routes if tensions escalate, reinforcing the necessity for strategic planning and military preparedness in key maritime zones.
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