Iran Israel war impact on India: The ongoing conflict between Iran and Israel is beginning to impact global energy markets, with potential consequences for India’s supply of essential fuels and commodities. As tensions escalate in the Middle East following attacks involving the United States and Israel on Iran, concerns are rising about higher fuel and gas prices in India.

Prices of petrol, diesel and edible oils have already shown signs of increase due to global market uncertainty. Analysts warn that if the conflict continues, the prices of several other essential commodities may also rise. Natural gas supply has become a key concern as the war disrupts energy logistics in the region.

One major development is the suspension of liquefied natural gas (LNG) supplies from Qatar. Reports indicate that around 40 percent of the LNG supply has been affected, creating uncertainty for gas distribution companies in India.

India heavily depends on the Middle East for its natural gas imports. Currently, the country imports about 195 million metric standard cubic metres per day (MMSCMD) of gas, out of which nearly 60 MMSCMD is supplied by Qatar.

Due to the escalation of hostilities, production operations at certain LNG facilities operated by QatarEnergy have been disrupted. The company has reportedly issued a Force Majeure notice, indicating that it may not be able to fulfil supply commitments under existing contracts.

In response to the disruption, India has begun exploring alternative energy sources. Government agencies have started discussions with suppliers in Canada and Australia to secure additional LNG supplies. At the same time, India is also strengthening energy cooperation agreements with countries such as the United Arab Emirates and the United States.

Gas distribution companies have expressed concern about supply stability. In a communication addressed to GAIL India’s chairman, the Confederation of City Gas Distribution (CGD) companies highlighted that reduced supplies and limited availability in the spot market could impact priority sectors.

Despite these developments, government officials say that there is no immediate shortage of natural gas in the country. Authorities are closely monitoring the situation and taking steps to ensure uninterrupted supply for households, CNG consumers and small industries.

However, experts warn that if the geopolitical tensions in West Asia continue for a prolonged period, India could face higher energy import costs and increased gas prices in the coming months.