The commerce ministry on Friday held consultations with key stakeholders, including shipping lines, exporters, container firms, and other departments, to assess the impact of the Iran-Israel conflict on India’s overseas trade, an official said.

The meeting was chaired by commerce secretary Sunil Barthwal.

The participants said the situation in the Strait of Hormuz is currently stable and a ship reporting system is in place to monitor any incidents.

The freight and insurance rates are also being closely monitored, the official said.

The commerce secretary emphasised the need to assess the evolving situation and its impact on Indian trade, the official said.

He highlighted the importance of exploring all possible alternatives in response to the situation. Exporters have stated that the war, if escalated further, would impact world trade and push both air and sea freight rates.

They have expressed apprehensions that the conflict may impact the movement of merchant ships from the Strait of Hormuz and the Red Sea.

Nearly two-thirds of India’s crude oil and half of its LNG imports pass through the Strait of Hormuz, which Iran has now threatened to close.

This narrow waterway handles nearly a fifth of global oil trade and is indispensable to India. According to GTRI, any closure or military disruption in the Strait of Hormuz would sharply increase oil prices, shipping costs, and insurance premiums, triggering inflation.