India has begun urgent discussions with global shipping companies after the escalating conflict involving the United States, Israel, and Iran severely disrupted cargo movement in the Middle East, leaving several vessels and sailors in uncertain conditions.
Union Commerce Minister Piyush Goyal said on Friday that the government is actively coordinating with shipping authorities and private companies to resolve the crisis affecting Indian cargo shipments in the region.
According to officials, dozens of vessels flying the Indian flag are currently caught in the tense waters of the Persian Gulf, many of them carrying crude oil and liquefied natural gas (LNG). These ships reportedly have more than a thousand sailors onboard, raising concerns about safety and supply disruptions.
Government Begins Emergency Talks
Speaking at an event in New Delhi, Goyal said the government has initiated discussions with the Ministry of Ports, Shipping and Waterways along with major shipping firms to explore ways to safely move the cargo and protect Indian maritime interests.
He indicated that authorities are trying to ensure that shipping routes reopen or alternative solutions are arranged so trade flows can continue.
Officials said an inter-ministerial coordination group has been meeting regularly with exporters and shipping operators to assess the situation and gather feedback from industry stakeholders.
Strait of Hormuz Disruption Hits Global Oil Trade
The crisis has intensified after tensions around the Strait of Hormuz, one of the world’s most critical oil shipping lanes. The narrow passage normally handles nearly 20 percent of global oil shipments and a major share of India’s energy imports.
With the war escalating, the route has effectively become inaccessible for several commercial vessels, forcing many ships to remain stranded or take longer alternative routes.
Iran has reportedly issued warnings about ships passing through the strait during the conflict, further increasing fears among shipping operators and insurance companies.
Exporters Face Rising Shipping Costs
Indian exporters are also feeling the impact as freight rates and marine insurance costs have surged sharply due to the geopolitical risk in the region.
The commerce ministry said it is monitoring the situation closely and will consider policy support if exporters face severe financial strain due to the disruption.
Goyal assured businesses that the government would continue supporting exporters so that India can maintain its trade commitments with international buyers.
India Looks at Alternative Oil Sources
The conflict is also forcing Asian economies to reconsider their energy supply strategies. Several countries in the region are exploring alternate shipping routes and fuel sources to maintain stable imports.
India may temporarily increase crude purchases from Russia, especially after Washington reportedly allowed a limited window for such imports to continue.
