Six days into the Iran war, fighting across West Asia shows no sign of easing. On Wednesday a ballistic missile fired from Iran toward Turkish airspace was shot down by NATO air and missile defence systems over the eastern Mediterranean, and Saudi Arabia reported another intercepted drone attack from Tehran. The conflict has heightened fears of wider spillover, especially around the Strait of Hormuz, a vital choke point for global oil and LNG shipments, and has already pushed crude prices sharply higher.
The oil shock is the most immediate channel through which India may feel the impact. Brent crude was trading at about $83.07 a barrel on Wednesday, roughly 20% higher since the previous Friday, after attacks on regional refineries and disruptions in shipping routes. India imports about 88% of its crude needs, so sustained turmoil around Hormuz could raise domestic petrol and diesel costs. For now, a PTI report says retail fuel rates are not expected to rise in the immediate term. Officials note a maritime detour around the Cape of Good Hope is available but would lengthen voyages and add freight and insurance costs, lifting landed fuel prices.
Edible oils are also vulnerable. BV Mehta, executive director of the Solvent Extractors’ Association of India, told BusinessLine that India depends heavily on imports: palm oil from Indonesia and Malaysia, soybean oil from Argentina, Brazil and the US, and sunflower oil from Russia and Ukraine. Much of this cargo transits the Strait of Hormuz and the Suez Canal; any blockage could cause short-term shortages and price volatility. The government’s Department of Consumer Affairs recorded small retail rises-about Rs 1–3 per kg for packed sunflower, soybean and palm oil-on March 3 versus the day before.
Food staples beyond oils face pressure too. Suresh Agarwal of the All India Dal Mill Association warned to the Economic Times that “if the war continues beyond a week, the price of pulses will increase.” India imports roughly 5–6 million tonnes of pulses yearly from Myanmar, Canada and parts of Africa, and higher logistics costs would raise landing prices. Dry fruit supplies-figs, almonds, pistachios, raisins, saffron and apricots from Iran and Afghanistan-are at risk. Vijay Bhuta of the Mumbai Dryfruit and Date Merchants Association told the Times of India that supplies could be halted if Iranian routes close; some Afghan consignments are already being routed through Iranian ports after shipments via the Wagah–Amritsar land route stopped.
Fertiliser exports from West Asia are being disrupted, according to MarketWatch, and higher fuel and gas costs will raise farming expenses. Air travel has been hit hard: Flightradar24 reported about 12,300 flight cancellations as of March 3, including at Dubai and Doha hubs, as carriers reroute to avoid the Gulf-raising fuel burn and insurance bills, which can translate into pricier tickets. Plastic raw materials, linked to oil, rose by up to 12% in two days, pushing up costs for plastic goods. Pharmaceutical makers warn of delays in APIs from China and high‑end starting materials from Europe; a Moneycontrol industry source said such disruptions could stall complex generics and value‑added drug production.
Taken together, analysts say the Iran war — through higher oil, freight and insurance costs and fractured supply chains — could make a broad range of everyday goods more expensive for Indian consumers.
Original Source: https://www.firstpost.com/explainers/iran-war-cooking-oil-medicines-to-become-expensive-wallet-impact-13986386.html
Category: India
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Publish Date: 2026-03-05 12:30:00
