Iran-Israel War Impact on Indian Economy: The central government’s trade ministry engaged in talks with stakeholders from the domestic shipping and air cargo sectors on Friday, sources told Zee Business. The discussions covered aspects such as the possible impact of the ongoing Iran-Israel conflict on Indian trade.

The meeting was chaired by Commerce Secretary Sunil Barthwal, and the discussions spanned topics such as the potential impact on Indian trade and freight rate movements, according to the sources.

The deliberations highlighted the need to closely monitor both freight and insurance rates to ensure corrective action if needed.

The stakeholders participating in the meeting stated that the situation in the Strait of Hormuz is currently stable, according to the sources.

“Moreover, the ship reporting system is in place to monitor any incidents. The freight and insurance rates are also being closely monitored,” they said. 

The official emphasised the need to assess the evolving situation and its impact on Indian EXIM trade, highlighting the importance of exploring all possible alternatives in response to the situation, the sources added. 

Meanwhile, India’s exports contracted 2.2 per cent to $38.7 billion in May amid a drop in global oil prices, official data showed this week.

The country’s trade deficit narrowed to $21.9 billion, with imports declining 1.7 per cent to $60.6 billion thanks to a decline in inbound gold and oil consignments.

A week into Iran-Israel war, both sides exchange strikes 

Tensions persisted in the Middle East as Israel and Iran continued to exchange strikes a week into war. Iran reportedly refused to discuss the future of its nuclear programme “until Israeli aggression stops”, while Israel claimed to have struck several military targets in Iran overnight, foreign media reported. 

However, Iran’s Foreign Minister Abbas Araghchi later arrived in Geneva to engage in talks with some of his European counterparts.

The ongoing war in the Middle East has kept investors on their toes globally. MSCI’s all-world index–which aims to capture market activity in developed as well as emerging nations–inched up 0.1 per cent on Friday evening India time in a nascent rebound after losing 1.3 per cent in the past three days.   

Middle East Tensions | American, Chinese & Russian stance in Iran-Israel conflict

While China and Russia have reportedly strongly condemned Israel’s actions in its conflict with Iran, the White House has said US President Donald Trump would decide on America’s involvement in the Israel-Iran conflict over the next two weeks.

However, some experts say that the “two weeks” timeline may change given Trump’s use of the phrase in the past, foreign media reported.