The US-Israel war on Iran is now rippling through India’s trade, manufacturing and agriculture sectors, with rising freight costs, insurance premiums and shipping disruptions threatening key imports and exports. The conflict may disrupt India's imports of edible sunflower oil and key fertiliser inputs, industry bodies have warned, adding that exports of agricultural commodities to the Middle East and Europe could also be affected. The broader economy is expected to face oil price volatility and macroeconomic spillovers from the escalating crisis, analysts said, though India’s oil supply chain does not yet face structural insecurity. Market analytic firm Kpler's vessel-tracking data showed that 2.5–2.7 million barrels per day, or about 50 per cent of India’s crude imports, transit the Strait of Hormuz, largely sourced from Iraq, Saudi Arabia, the UAE and Kuwait. Analysts said continued volatility in West Asia could keep bullion prices elevated, especially if crude prices remain high and risk sentiment weakens further.

Source: The Telegraph March 02, 2026 20:37 UTC