'Conflict escalation in West Asia likely to push logistics cost up'

The escalation of conflict in the West Asian region is expected to push already high logistics costs besides hurting trade in sectors such as oil, electronics and agriculture, according to exporters.

They said that insurance costs for exports to the countries directly involved in the war could also go up, which will impact Indian exporters' working capital.

Think tank Global Trade Research Initiative (GTRI) stated that the conflict is already hurting India's trade with countries like Israel, Jordan, and Lebanon.

The Federation of Indian Export Organisations (FIEO) said the Iran-Israel conflict has the potential to significantly impact world trade and the global economy in several ways.

"Iran is a key player in the oil market. Any escalation in conflict could disrupt oil supplies, leading to higher prices, which would impact global economies, especially those reliant on oil imports. Oil prices have already moved up by USD 4 per barrel," FIEO DG Ajay Sahai said.

Expressing concerns,