Strait of Hormuz Reopening Expected to Boost Exports to WANA Region: EEPC India

New Delhi, Jun 16 (KNN) The peace deal between the US and Iran to end their 108-day conflict is expected to pave the way for the reopening of the Strait of Hormuz, bringing significant relief to global trade and India's export sector, EEPC India said on Tuesday.

The Strait of Hormuz is a critical energy corridor for India, handling nearly 50 per cent of the country’s crude oil imports, around 70 per cent of LPG imports and close to 90 per cent of LNG supplies.

The disruption in shipping through the Strait had led to route diversions, longer transit times and higher logistics costs, adversely affecting trade flows, particularly with the West Asia and North Africa (WANA) region.

EEPC India said that engineering exports to the WANA region declined sharply amid the geopolitical tensions, falling 50 per cent year-on-year in March 2026 and 8 per cent during FY 2025-26. 

The decline continued in April 2026, when engineering exports to the region dropped 18 per cent to USD 1.10 billion from USD 1.34 billion in the corresponding month last year.

The slowdown was largely driven by lower demand from key markets such as the UAE and Saudi Arabia.

EEPC India said the reopening of the Strait is expected to improve export prospects to the WANA region and other markets, while also helping ease oil and gas prices, reduce inflationary pressures and support overall trade stability.

Commenting on the development, Pankaj Chadha, Chairman, EEPC India, said “The reopening of the Strait of Hormuz following the US–Iran peace deal is a welcome development for global trade and India’s engineering exporters. It will reduce logistics disruptions and costs, improve export prospects to the WANA region, and support overall trade stability.”

He noted that despite the broader decline in the region, engineering exports to Oman recorded growth, supported by the recently signed India–Oman Comprehensive Economic Partnership Agreement (CEPA).

The proposed US-Iran peace agreement is expected to be signed on June 19, with its implementation seen as critical to restoring trade flows through one of the world’s most important maritime routes.

(KNN Bureau)