Govt moves to shield trade as Iran war chokes sea routes

As the Iran war intensified, disrupting Gulf shipping lanes and unsettling energy and equity markets, the Union government activated a multi-ministry war room to stabilise trade and ease port congestions. Alongside, India stepped up efforts to protect its people in West Asia. Among the steps, the civil aviation ministry announced 10 evacuation flights to be operated by IndiGo, from Jeddah

- SHREYA NANDI & SHINE JACOB

(Top) The heavily damaged Gandhi Hospital in Tehran. (Above) Israelis take cover while air-raid sirens warn of incoming missiles launched by Iran, in Beit Shemesh on Monday.

With the Iran war escalating sharply and crisis deepening in the global energy market, India on Monday unveiled a coordinated plan to support exporters and shippers caught in the fallout.

In New Delhi, officials moved to set up a multi-ministry support desk to help exporters and importers manage disruptions in trade flows, after industry representatives warned of cargo pileups at ports and mounting logistics challenges linked to the conflict.

The escalation followed joint strikes by the United States and Israel on Iran that killed its Supreme Leader, Ayatollah Ali Khamenei, and prompted retaliatory attacks by Iran and allied armed groups on Israel, US military targets and several Gulf nations. Israel widened its campaign to include Hezbollah-linked sites in Lebanon. The intensifying exchanges have affected shipping lanes, energy infrastructure and regional airspace, with oil prices rising and airlines cancelling or rerouting flights.

India’s trade exposure to West Asia is significant. Between April and December, India exported goods worth about $50 billion to 13 countries in the region, accounting for roughly 1s per cent of total outbound shipments. Imports stood at $116.45 billion during the same period, nearly a fifth of overall inbound trade. The region spans Gulf Cooperation Council members — Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates — as well as Iran, Iraq, Israel, Jordan, Lebanon, Syria and Yemen.

Export disruption