The West Asian Crisis

07-Mar-2026 12:32 PM

The crisis in West Asia is becoming more serious day by day. Iran is engaged in a fierce war with Israel and the United States, and neither side appears ready to reconcile. This turbulent and crisis-ridden environment is having multiple dimensions that are directly and indirectly impacting India. Iran is targeting a dozen countries in West Asia and the Gulf region, impacting petroleum production and trade there. Crude oil prices have risen in the international market.

Diesel, petrol, and LPG cylinders have also become more expensive in India. The increase in petrol and diesel prices will increase transportation costs, potentially leading to a rise in food inflation. If the Iran-US war continues for a long time, the international price of petroleum will rise further, causing significant hardship to many countries around the world, including India and China.

India is facing a double whammy from the West Asian crisis. On the one hand, petroleum imports have become more expensive, while on the other, exports to the Gulf countries are facing a crisis. It's worth noting that these Muslim-majority countries are currently observing the holy month of Ramadan, and at this time, they import large quantities of goods, especially basmati rice and small cardamom, from India.

However, the sea route is not without risks, and Indian exports have been stalled. Exports of other products, including fodder, coffee, spices, and oilmeal, are also being severely affected. Sugar shipments are not reaching there. India's foreign trade deficit has already increased significantly, and in such a situation, the disruption of exports to West Asia is not good for the economy.