- By Shibra Arshad
- Sat, 07 Mar 2026 12:49 PM (IST)
- Source:JND
Unrest in West Asia erupted after the US and Israel allegedly launched a ‘pre-emptive’ attack on Iran, killing Supreme Leader Ayatollah Khamenei. This has engulfed the region, disrupting global crude oil supply and multiple industries. As tensions escalated, Iran retaliated by attacking US assets and oil infrastructure, and suspended the Strait of Hormuz, which handles nearly 20 per cent of global oil shipments. Reports suggest that gas prices in Europe surged by nearly 50 per cent after QatarEnergy suspended the production of Liquefied Natural Gas (LNG) following attacks on its operating facilities in Ras Laffan Industrial City and Mesaieed Industrial City.
Now, war impact is widening in terms of sectors and Industries affected, as India depends on the region for the import of more than just oil and gas. India heavily depends on raw materials imported from West Asia in sectors such as steel, fertilisers, cement and power transmission. These materials include limestone, sulphur, gypsum, direct reduced iron (DRI), and copper wires. India has sourced more than half of these commodities from the region.
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As strikes and drones continue to hit oil infrastructure and logistic facilities like Strait of Hormuz has heightened the fear of supply disruption and global price hike. For India, the region is critical in terms of both energy and industrial input. A Delhi-based trade think tank, GTRI, reported that India imported goods worth 98.7 million dollars in 2025; any supply disruption or shipment route hindrance will impact several Indian Industries.
How Will West Asia Unrest Affect India Beyond Energy Industry
As the key energy commodities supplier to the world, unrest in the region will have a global impact, including on India. India is already feeling the impact, as with the crude oil stockpile estimated to last for only a month, the suppliers have started to buy discounted oil from Russia and Gas companies are considering curbing the industrial supplies if LNG production by QatarEnergy remains suspended. However, the impact might be felt beyond the energy sector if shipping through the Strait of Hormuz continues to be disrupted.
Here’s a list of Industries that can be impacted severely.
How India’s Construction Sector Depends On West Asia
The construction sector of India heavily depends on raw materials imported from West Asia, increasing the concern of a negative impact if the war continues. The GTRI report estimated that India imported 483 million dollars worth of limestone and 129 million dollars worth of gypsum from West Asia, accounting for 68.5 per cent and 62.1 per cent of the total imports, respectively. Both minerals are key to costruction ecosystem as they are used in cement production. If the disruption continues, the prices of cement are expected to go up.
Fertilizer Industry
India imported Sulphur worth 420 million dollars from West Asia, accounting for 65.8 per cent of the total sulphur imports it made in 2025. Sulphur, which is used in producing sulphuric acid, a key component of fertiliser. The supply disruption can impact the prices significantly. India heavily depends on West Asia for the import of several other materials, such as Direct Reduced Iron (DRI) and Copper Wire. DRI is a key component in steelmaking, while Copper wire is crucial for power transmission. Of the 59 per cent of DRI and 50 per cent of Copper wire that India imported in 2025, were sourced from West Asia.
India also depends on West Asia for diamond processing, as nearly 40 per cent of the raw material was imported from the region before it was processed in India and exported in global market.
Can India Source THESE Materials From Somewhere Else
As per a source quoted by the Indian Express, India has alternatives to source materials such as limestone and DRI, but the concern lies in the rising energy sector in terms of instability in oil and gas prices. “Limestone can be sourced from countries like Thailand and Vietnam. If required, DRI can also come from places such as Libya or Malaysia. The real challenge is the movement in oil and gas prices,” the person from the steel Industry was quoted as saying.
The steel industry relies on gas for decarbonisation, which has now become vulnerable to rapidly changing energy prices.
Prashant Vashisht, Senior Vice President and Co-Group Head, Corporate Ratings at ICRA Limited, said supply disruptions of fertiliser inputs such as LNG and sulphur may not affect the fertiliser industry for the time being, as it is currently off-season; however, longer disruptions can have an impact on urea production.