US-Iran Ceasefire & Strait of Hormuz Reopening Bring Temporary Relief To Indian Exporters: FIEO

New Delhi, Apr 8 (KNN) The announcement of a ceasefire between the United States and Iran, along with the reopening of the Strait of Hormuz, is expected to provide immediate relief to Indian exporters by easing shipping disruptions, industry body Federation of Indian Export Organisations (FIEO) said on Wednesday.

US President Donald Trump announced a two-week suspension of military strikes, while Iran agreed to allow safe navigation through the crucial shipping corridor. The development has triggered stabilisation across global oil, equity, and currency markets.

Short-Term Stability, Long-Term Caution

FIEO President S. C. Ralhan said, "The ceasefire and reopening of the Strait of Hormuz bring immediate relief to exporters by easing shipping disruptions, high freight rates, and insurance costs," PTI reported.

This is expected to ease logistical bottlenecks in the short term. However, he said exporters are likely to remain watchful due to the temporary nature of the truce, adding that “sustained stability is essential for restoring confidence and ensuring smooth trade flows.”

Impact on Logistics and Energy Supplies

The recent conflict, including the joint US-Israel strikes on Iran in February, had severely disrupted shipping routes, leading to delays, higher freight charges, and increased insurance premiums.

The earlier closure of the Strait of Hormuz—through which nearly one-fifth of global oil and gas supplies pass—had led to supply shortages and sharp increases in energy prices across regions, including Asia.

Air and sea freight costs also surged, particularly affecting perishable exports such as fruits, vegetables, and marine products, resulting in additional pressure on exporters’ margins.

FIEO noted that while the ceasefire brings temporary relief, long-term stability in the region will be critical for ensuring uninterrupted trade and sustaining export growth.

(KNN Bureau)