Rising tensions between Iran and Israel have triggered volatility throughout world inventory markets, with traders reacting nervously to the heightened geopolitical uncertainty.
A fierce battle is presently unfolding between Israel and Iran, with each nations launching heavy missile assaults towards one another, inflicting in depth destruction on either side. Specialists warn that the state of affairs is more likely to escalate additional and should drag the complete Center East into the battle. If the conflict continues for an prolonged interval, it might have important repercussions for India because of its commerce ties with each international locations. India exports numerous items to, and in addition imports a number of important objects from, Iran and Israel. Within the occasion of a full-blown conflict, a number of commodities in India might even see a pointy rise in costs. Let’s check out which merchandise might be affected.
Rise in crude oil
India imports 85 per cent of its oil demand by means of imports from numerous international locations. Regardless that India doesn’t immediately import giant volumes of oil from Iran, it stays a big participant amongst world oil producers. The continuing battle between Israel and Iran has already disrupted the oil market, pushing crude oil costs sharply upward, by over 11 per cent. Brent crude has surged to $75.32 per barrel, whereas West Texas Intermediate (WTI) has reached $73.42 per barrel.
If the conflict escalates additional, crude oil costs might rise much more, immediately impacting India’s import prices. Consequently, gasoline costs in India, together with petrol, diesel, LPG, and aviation turbine gasoline (ATF), might even see a pointy hike.
What does India import from Israel?
India is Israel’s second-largest buying and selling associate in Asia and ranks ninth globally. Lately, bilateral commerce between the 2 nations has expanded considerably, notably in sectors like digital equipment, high-tech merchandise, medical tools, and communication techniques.
- Electrical and digital tools
- Arms and ammunition
- Optical, picture, technical and medical tools
- Fertilizers
- Equipment, nuclear reactors and boilers
- Aluminum, miscellaneous chemical merchandise
- Pearls, valuable stones, metals and cash
- Natural chemical compounds
- Instruments made from base metals and so on.
What does India import from Iran?
In March 2025, India exported items price $130 million to Iran and imported items price $43 million. In comparison with the identical interval the earlier 12 months, exports to Iran rose by $41.5 million (a rise of 47.1%) from $88.1 million, whereas imports from Iran declined by $13.3 million (a drop of 23.6%) from $56.2 million.
- Natural chemical compounds
- Edible fruits, nuts
- Mineral fuels, oils
- Salt, sulphur, clay, stone, plaster, lime and cement
- Plastics and their merchandise
- Iron and metal
- Vegetable merchandise comparable to gums, resins and lacquers
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