US-Iran Conflict Disrupts India's Trade

The escalating conflict between the United States and Iran is causing significant disruptions to global trade, with a direct impact on India's economy. Shipping companies, including CMA CGM, have begun imposing emergency conflict surcharges on cargo moving through the Middle East, increasing import costs. India faces potential disruptions to its imports of edible sunflower oil, primarily sourced from Russia, Ukraine, and Argentina, and critical fertilizer inputs like sulphur and sulphuric acid, largely from Qatar, the United Arab Emirates, and Oman. Exports of agricultural commodities from India to the Middle East and Europe are also at risk. The situation has led to increased crude oil prices, contributing to market volatility, a decline in the BSE SENSEX, and a rise in Gold and Silver prices as investors seek safe havens. Manufacturers in petrochemical, rubber, cement, and steel sectors are also likely to face higher input costs.