Israel-Iran tensions may pinch your pocket: These things might get costlier in India
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 in opposition to one another, inflicting in depth destruction on either side. Consultants warn that the state of affairs is more likely to escalate additional and should drag your entire Center East into the battle. If the warfare continues for an prolonged interval, it may have vital repercussions for India attributable to its commerce ties with each international locations. India exports numerous items to, and likewise imports a number of important objects from, Iran and Israel. Within the occasion of a full-blown warfare, a number of commodities in India might even see a pointy rise in costs. Let’s check out which merchandise may very well be affected.
Rise in crude oil
India imports 85 per cent of its oil demand via imports from numerous international locations. Although India doesn’t straight import massive volumes of oil from Iran, it stays a big participant amongst world oil producers. The continued 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 warfare escalates additional, crude oil costs may rise much more, straight impacting India’s import prices. In consequence, gas costs in India, together with petrol, diesel, LPG, and aviation turbine gas (ATF), might even see a pointy hike.
What does India import from Israel?
India is Israel’s second-largest buying and selling companion in Asia and ranks ninth globally. In recent times, bilateral commerce between the 2 nations has expanded considerably, significantly in sectors like digital equipment, high-tech merchandise, medical gear, and communication methods.
- Electrical and digital gear
- Arms and ammunition
- Optical, photograph, technical and medical gear
- Fertilizers
- Equipment, nuclear reactors and boilers
- Aluminum, miscellaneous chemical merchandise
- Pearls, treasured stones, metals and cash
- Natural chemical compounds
- Instruments fabricated from base metals and so on.
What does India import from Iran?
In March 2025, India exported items value $130 million to Iran and imported items value $43 million. In comparison with the identical interval the earlier yr, 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 akin to gums, resins and lacquers
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