The Iran-Israel War Is Reshaping India’s Supply Chains

InnovationTransportationThe Iran-Israel War Is Reshaping India’s Supply ChainsBySteve Banker,Contributor.Forbes contributors publish independent expert analyses and insights. I cover logistics and supply chain management.Follow AuthorApr 29, 2026, 07:32am EDTApr 29, 2026, 07:48am EDT--:-- / --:--This voice experience is generated by AI. Learn more.This voice experience is generated by AI. Learn more.Indian vessel 'Nanda Devi' carrying liquefied petroleum gas (LPG) arrives at Vadinar Port in the Jamnagar district of Gujarat state on March 17, 2026 after Iran allowed it to pass through the Strait of Hormuz, a key energy corridor that remains disrupted by the Middle East war. Indian-flagged tankers 'Shivalik' and 'Nanda Devi', carrying around 92,700 metric tonnes of LPG, had reached ports in Gujarat state, marking a rare exception in commercial passage through the chokepoint. (Photo by AFP via Getty Images)AFP via Getty ImagesIn global trade, disruptions are common. Events that require supply chains to be fundamentally restructured are not. The last large disruption, of course, was caused by COVID 19. Many supply chain leaders are using their COVID-19 playbooks to navigate the disruption, but the ongoing war is seen as a disruption that is bigger, and could last longer, than the COVID disruptions. The Port of Hormuz choke point will remain a vulnerability to global petrochemical supply for years to come. Supply Chain Impacts for IndiaThe Iran-US-Israel conflict of early 2026 is painful for the US; it is devastating for India. On March 16, 2026, the liquified petroleum gas carrier Shivalik docked at Mundra Port carrying 44,000 metric tons of Iranian liquefied petroleum gas: India’s first such shipment from Tehran since 2019. It transited the Strait of Hormuz, where commercial traffic was running nearly 90% below pre-war levels, marine insurance premiums had surged more than 1,000%, and every major container carrier - Maersk, MSC, CMA CGM, H...