The commerce ministry on Friday held consultations with key stakeholders, including shipping lines, exporters, container firms, and other departments, to assess the impact of the Iran-Israel conflict on India's overseas trade, an official said.

 The meeting was chaired by Commerce Secretary Sunil Barthwal.

The participants informed that the situation in the Strait of Hormuz is currently stable and a ship reporting system is in place to monitor any incidents.

The freight and insurance rates are also being closely monitored, the official said.

The commerce secretary emphasised the need to assess the evolving situation and its impact on Indian trade, the official said. He highlighted the importance of exploring all possible alternatives in response to the situation.

Exporters have stated that the war, if escalated further, would impact world trade and push both air and sea freight rates. 

They have expressed apprehensions that the conflict may impact the movement of merchant ships from the Strait of Hormuz and the Red Sea.

Nearly two-thirds of India's crude oil and half of its LNG imports pass through the Strait of Hormuz, which Iran has now threatened to close.

This narrow waterway, only 21 miles wide at its narrowest point, handles nearly a fifth of global oil trade and is indispensable to India, which depends on imports for over 80 per cent of its energy needs.

Impact on India Inc so far is limited: Crisil

CRISIL Ratings in its latest report said that the ongoing conflict in the Middle East so far did not have any significant impact on global trade of Indian corporates.  However, if the uncertainties aggravate, some sectors might feel the impact, the report said. The uncertainties have impacted global crude markets, with the Brent crude hovering in the range of USD73 to USD76 per barrel over the past one week. During April and May, the Brent crude was hovering around USD 65 per barrel. Any escalation of the tensions could result in further spike in oil prices, the report said.