This post was originally published on The Economic Times
The worst fears of the global trading community have materialised. After days of rising tension, Israel, assisted by the United States, launched what it termed a pre-emptive strike on Iran, setting off a cycle of missile exchanges.
With Iranian state media confirming the death of Supreme Leader Ayatollah Ali Khamenei in the ongoing attacks, expectations are that the Islamic Revolutionary Guard Corps (IRGC) may adopt a more aggressive posture towards the US and Israel and could launch another set of ballistic missiles across multiple locations in the region, potentially disrupting global trade flows.
For India, the stakes are significant, as the Middle East is not a peripheral market for its exporters. It is a central trade artery, both a destination and a transshipment hub for Europe and Africa. As the conflict intensifies, exporters with exposure to West Asia say they are bracing for higher freight rates, longer transit times, and mounting uncertainty.
Freight pressure builds
Traders say that with Iran intensifying rocket fire and the conflict widening, disruptions across key Gulf trade hubs could deepen in the coming days. Any extended shutdown of Dubai International Airport, one of the world’s
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