•FIEO warns escalating West Asia conflict could disrupt global logistics, increase freight and insurance costs, and pressure supply chains.
•Conflict alters trade routes; Red Sea and Gulf straits face uncertainty, potentially rerouting via Cape of Good Hope, adding 15-20 days transit time.
•Rerouting will inevitably raise freight costs and stretch supply chains, impacting Europe and the United States.
•Heightened geopolitical risk leads to higher marine insurance premiums and potential upward pressure on global energy prices, affecting Rupee stability.
•FIEO calls for close monitoring and policy support to maintain Indian exporters' competitiveness amid sustained instability.
