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U.S.-Israel strikes on Iran have disrupted global trade, rerouting flights and delaying ships, raising costs and threatening supply chains.
The escalation of conflict in West Asia following US-Israeli strikes on Iran has disrupted global trade, affecting air and sea routes. Airlines have rerouted or canceled flights between India and Gulf countries due to closed airspace, while maritime shipping is experiencing delays as vessels may divert around the Cape of Good Hope, adding 15-20 days to transit times for shipments to Europe and the United States. This could increase freight and insurance costs, strain supply chains, and affect currency stability. Indian exporters, particularly in agriculture and textiles, have warned of rising logistics costs and reduced competitiveness in the face of ongoing instability.