Tuesday, 02 January 2024 12:17 GMT

India Welcomes US-Iran Ceasefire, Seeks Lasting Peace In Middle East, Opening Of Hormuz Strait


(MENAFN- Khaleej Times) [Editor's Note: Follow Khaleej Times live blog amid US-Israel-Iran ceasefire for the latest regional developments.]

India welcomed the ceasefire between the US and Iran and hoped the temporary truce would pave the way for lasting peace in the region.

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“We welcome the ceasefire reached and hope that it will lead to a lasting peace in West Asia,” said the Ministry of External affairs.“As we have continuously advocated earlier, de-escalation, dialogue and diplomacy are essential to bring an early end to the ongoing conflict," added the ministry, hoping "this will lead to lasting peace in the region and unimpeded freedom of navigation and global flow of commerce through the Strait of Hormuz."

“The conflict has already caused immense suffering to people and disrupted global energy supply and trade networks. We expect that unimpeded freedom of navigation and global flow of commerce would prevail through the Strait of Hormuz,” the ministry continued, reiterating its long-standing position that peaceful resolution through diplomatic channels remains the only viable path forward in the region.

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The Federation of Indian Export Organisation (FIEO), meanwhile, said the ceasefire would give immediate relief to exporters.

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

While this would help normalise logistics in the short term, exporters will remain cautious given the temporary nature of the truce. "Sustained stability is essential for restoring confidence and ensuring smooth trade flows," he added.

The two-week ceasefire could also help ease the enormous LPG crisis in India, said analysts.

About 90 per cent of India's LPG imports came from the Middle East and the US-Israel-Iran war triggered off massive shortages in the country.

“The 14-day ceasefire creates a key window to begin clearing this backlog and restore outbound flows,” said Nikhil Dubey, senior research analyst at Kpler.

“The extent of progress will depend on the agreed terms and how effectively they are implemented on the ground. Any improvement in traffic through the Strait would help ease supply pressure for Asian markets that rely heavily on it.”

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