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Delhi. The Federation of Indian Export Organizations (FIEO) on Wednesday said the reopening of the Strait of Hormuz as well as the announcement of a ceasefire between the US and Iran will provide immediate relief to exporters and reduce disruptions in shipping routes. US President Donald Trump announced a halt in military strikes against Iran for two weeks. Iran agreed to allow safe navigation through the Strait of Hormuz during the ceasefire, leading to rapid swings in oil, stock markets and currency markets.

FIEO President S. “The ceasefire and the reopening of the Strait of Hormuz provide relief to exporters from shipping constraints, higher freight rates and insurance costs,” C. Ralhan said. He said while this would help normalize logistics in the short-term, exporters would still remain cautious given the temporary nature of the ceasefire.

“It is important to maintain stability so that confidence is restored and trade can run smoothly,” Ralhan said. The announcement of the ceasefire is significant as the West Asian region is a major export destination for Indian exporters. The conflict in the region has created difficulties in sending goods to the Gulf countries. India’s bilateral trade with Gulf countries stood at $178 billion in FY 2024-25 (exports of US$56.87 billion and imports of US$121.67 billion).

The joint attack on Iran by the US and Israel on February 28, followed by Iranian retaliatory action, severely disrupted the movement of ships in international waterways. Ralhan said the region is the largest agricultural export destination for basmati rice, sea products and fresh produce. He said that air and sea freight for transportation of fresh fruits and vegetables has increased.

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