Iran Financial News

New Delhi: Basmati rice exporters will meet officials of the Agricultural and Processed Food Products Export Development Authority (Apeda) this week to assess the fallout of escalating tensions in West Asia, as shipping disruptions and rising freight and insurance costs threaten India’s nearly $6 billion basmati trade in FY25, as per people in the know.The move comes amid growing uncertainty over consignments bound for the Gulf region, which accounts for nearly 60-70% of India’s basmati exports. Exporters said that while the immediate damage is still being assessed, several shipments are either stuck in transit or held up at ports, raising concerns over delayed payments and contractual risks if the conflict is prolonged.“Exports have come to a standstill in some corridors.

aviation and maritime corridors that connect India with key West Asian markets, complicating travel planning for patients and increasing freight expenses for exporters.While companies have yet to report a sustained demand shock, hospitals and drugmakers say the disruption to mobility and logistics systems underpinning cross-border healthcare and medicine trade raises the risk of softer medical travel volumes and higher export costs if tensions persist.The aviation disruption is particularly significant for India’s medical tourism sector, which recorded approximately 644,387 foreign tourist arrivals in 2024. It is particularly exposed to West Asia, a region that accounts for nearly 18% of inbound patients, or about 115,000 travellers, seeking treatment ranging from complex surgeries to advanced clinical care.As regional airspace comes under heightened security scrutiny, industry leaders say travel uncertainty is beginning to influence patient decision-making.

MSMEs, accounting for about 45% of India’s total exports, any prolonged instability threatens not just margins but order continuity.“We are fortunate that our goods are not stuck in transit,” said Sushma Morthania, director at Shezar Technologies, which exports electronic components worth around ₹50 lakh each month. Nearly 40% of her shipments go to West Asia, Europe, and parts of Latin America via Dubai’s Jebel Ali Port.

drive up natural gas prices and freight costs, industry officials and analysts said.Although the government makes a provisional estimate of the fertilizer subsidy at the start of the financial year—based on sowing patterns, irrigated area and historical demand—it carries an implicit obligation to enhance the allocation if unforeseen developments arise.Currently, the fertilizer subsidy is projected at ₹1.71 trillion for the next financial year, slightly lower compared to the revised estimate of ₹1.86 trillion for the ongoing 2025-26 fiscal (FY26)."If the crisis persists for long, the fertilizer prices are expected to go up which might require higher subsidies," said an industry official on the condition of anonymity. In the past, the government has been making special financial provisions for additional subsidies in case of a spike in global prices.Natural gas, the primary feedstock and energy source for urea production, accounts for a bulk of fertilizer manufacturing costs, making the sector highly sensitive to price spikes.Research firm Zero Carbon Analytics has said that of the top countries that import oil and gas via the Strait of Hormuz, Japan faces the most direct risk of disruption, due to its high share of oil and gas trade through the shipping route and its reliance on imported oil and gas.

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crude flows, has emerged as a flashpoint after US and Israeli strikes on Iran and retaliatory actions by Tehran. While there has been no formal closure, heightened uncertainty has been enough for carriers to alter schedules and pause sailings.Shipping majors including Mediterranean Shipping Company and A.P.

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The US and Israel are betting on regime change in Iran through air attacks that began on Saturday. So far, bombardment has left Iran’s top leader Ayatollah Khamenei dead and sparked a retaliatory flare-up in West Asia. This is a gamble, although US air-strike precision has improved since its 2003 war on Iraq to end Saddam Hussein’s rule, an invasion that left countless civilians dead and inflamed the region.

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₹22,615 crore in Indian equities after selling for three months in a row, showed NSDL data. Strengthening of the Indian rupee (improves returns in dollar terms) and reducing trade uncertainties with India-European Union deal and other trade agreements were the likely catalysts.But geopolitics could interrupt that revival.The latest new series gross domestic product (GDP) data for the December quarter (Q3FY26), using 2022-23 as the base year, showed growth at 7.8% despite tariff troubles.

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petroleum ministry is taking continuous stock of the energy supply scenario along with the refiners. They are looking at ways to ensure that supplies are not interrupted.

assassination of Iran's supreme leader Ayatollah Ali Khamenei, which has raised hopes of a speedy end to the conflict, regime change in Teheran, peace in the region and the stability that markets crave. Iran's state media confirmed that Khamenei died on the first day of military assault by the US and Israel."Markets could actually rally on hopes of stability in the region in the days ahead after the confirmed death of the supreme leader," said Nirmal Jain, founder of IIFL Group.

₹500 crore for carriers.In a tweet on Saturday, the Directorate General of Civil Aviation said Indian airlines cancelled around 410 flights on 28 February and 440 on 1 March due to security concerns in parts of the Middle East airspace, impacting Gulf and long-haul routes beyond the region, including services to London Heathrow and Canada.West Asia accounts for 15-20% of IndiGo’s daily revenue, according to at least one sell-side analyst. “Flight cancellations due to the West Asia crisis will have an impact on airline revenues.

Mint examines how events in Iran will unfold and their implications for India and the rest of the world.Late on Saturday, the US and Israeli forces launched ‘Operation Epic Fury’—a massive military operation that not only killed Iran's supreme leader Khamenei but also 40 senior officials, disrupting the Islamic Republic’s command and control. The strikes happened across 24 of Iran’s 31 provinces. Iran retaliated by firing missiles and drones into Israel and other Arab states in the region.

Indian companies with operations in West Asia spent the weekend tracking their employees and gauging the impact on their businesses as the US-Israel strikes on Iran escalated the conflict, freezing movement from outside and within the region.“We are in touch with the client firms. The workers are safe.

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