Hormuz reopening spells relief for exporters while shipping risks linger

The reopening of the Strait of Hormuz after a peace deal between the United States and Iran offers relief to Indian exporters. India imports over 85% of its crude oil, and Hormuz accounts for about 20% of global oil shipments. During tensions, freight costs rose 15-25% on some routes and war-risk premiums surged; vessel diversions raised costs on others. As traffic resumes, costs are expected to moderate, though mines and lingering tensions remain. War-risk surcharges up to $2,000 per container and 25-50% higher freights hit engineering goods, textiles, plastics and gems. Rerouting via the Cape added up to two weeks of transit, delaying full normalization.