Iran has warned ships not to pass through the Strait of Hormuz due to the ongoing war. The strait carries about 20% of the world’s oil and gas, making it a vital global shipping route.
The warning has disrupted global shipping, leading to a rise in crude oil prices in India.
According to a report by The Economic Times, Industry executives said that if the Strait of Hormuz is closed, India’s garment and textile exporters will be affected because ships going to the US and Europe will have to take a longer route around the Cape of Good Hope.
The diversion is expected to increase transit time by 20–25 days, along with freight costs, at a time when fashion businesses are operating on tight seasonal calendars. Longer shipping durations could also disrupt the timely delivery of season-specific merchandise, exporters added.
