Industry on caution mode amid tensions in Middle East

As per news agencies, an Israeli missile strike has targeted a site in Iran. The explosions were reported in the cities of Isfahan and Nata. Meanwhile, Futures for Brent crude, which is the international oil benchmark, rose to more than USD 90.

The attack has transpired a few days after Iran launched 300 drones and missiles at Israel. Commercial aeroplane flights are avoiding flying over Iran.

WhatPackaging? spoke to Yash Bajaria, export manager, Super Bond Adhesives. He said, “The UN has warned that the world can’t afford another war. Even foreign diplomats urged Israel not to retaliate after Iran launched an attack via drones. The world is already facing a series of global crises – first pandemic in 2020 and 2021, followed by Russia’s invasion of Ukraine in 2022 & Israel bombing of Gaza in response to the October 2023 terror attack.”

He believes that the above events have roiled international markets, fanned inflation and threatened world trade.

Meanwhile Chandrasekhar Rajagopalan, president of IFCA told us, “Domestic sales should not see much of an  impact. If the global supply chain gets distorted or stressed there can be cost and export pressures.”

Bajaria added, “About paper, ink and adhesives industries in India, logistics are already at an all time high due to the red sea episode. This will affect raw material supply and ultimately slow down the industry.”

As per reports in a business daily, the Middle East crisis may hamper the pharma exports in India. Many Indian pharma companies have global presence in the Middle East and North Africa region. The countries in these regions have USD 1-bn of imports per year.

Meanwhile, leaders around the world have been urging restraint after the attack.