Commerce Ministry Reviews Trade Risks As West Asia Conflict Disrupts Key Export Routes

India’s Commerce Ministry is set to meet exporters, shipping lines and freight forwarders to assess the trade impact of escalating Iran–Israel tensions. With airspace closures already disrupting aviation, concerns are now shifting to critical maritime routes such as the Strait of Hormuz and Bab el-Mandeb. These chokepoints are vital for India’s exports to the US, Europe and West Asia, which together account for over half of outbound shipments. Any rerouting via the Cape of Good Hope could add 15–20 days to transit times, raising freight rates, insurance costs and working capital pressures. The review comes amid fears of a broader supply chain disruption, reminiscent of the Red Sea crisis, as shipping lines prepare to revise freight rates this month.