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Iran-Israel war could push freight, insurance costs, disrupt Red Sea trade; govt to meet traders this week
Indian Chronicle
|June 26, 2025
An escalating Iran-Israel war could push up freight and insurance costs on shipping routes and hinder efforts to normalise trade through the Red Sea, affecting Indian exports to West Asia and Europe, exporters and government Officials said on Monday as the Commerce and Industry Ministry is set to meet traders this week to take stock of the situation.
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This comes as the deadly conflict between Iran and Israel entered its fourth day, fuelling fresh concerns over global trade, especially oil flows, amid fears that Iran could block the Strait of Hormuz—through which 20-30 per cent of global oil trade passes—in retaliation for Israeli attacks.
“Freight and insurance costs could go up due to the ongoing war, but the route for Indian goods is away from the conflict zone. There has not been an immediate impact on Indian shipments,” a government official said. “The Commerce and Industry Ministry will assess the situation and meet exporters and shipping representatives this week,” another official added.
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