Israel-Iran Conflict

Recently, Israel carried out a massive air strike on Hodeidah, the Red Sea port city in Yemen, that is controlled by the Houthi militia, in response to a drone attack by the Houthis that had hit Tel Aviv. The attack reportedly caused losses worth millions, besides killing at least three and wounding over 80 others.

What is the issue?

• The conflict between Israel and Iran has created a situation of turmoil affecting the security of the large Indian diaspora based in the Gulf region.
• Iran has launched significant attacks on Israel, deploying over 300 projectiles, including drones, cruise missiles, and ballistic missiles. This action was widely seen as retaliation for a deadly strike on Iran's consulate in Damascus, Syria.
• This has created the additional risk of piracy and hostage-taking in the Gulf region.

Reasons for Israel-Iran Conflict:

• Historical Context: Iran and Israel have had a tumultuous relationship since the Iranian Revolution of 1979, which transformed Iran from a close ally of Israel under the rule of the Shah to an Islamic Republic openly hostile towards Israel.
• Religious and Ideological Differences: Iran is an Islamic republic governed by Shia Islam, while Israel is a predominantly Jewish state.
• The religious and ideological differences between the two countries have contributed to mutual suspicion and animosity.
• Israeli-Palestinian Conflict: Iran has been a staunch supporter of Palestinian causes, including backing militant groups like Hamas and Hezbollah, which are considered terrorist organisations by Israel.
• Iran's support for these groups and its calls for the destruction of Israel have heightened tensions.
• Geopolitical Rivalry: Iran and Israel are regional rivals vying for influence in the Middle East. They have conflicting interests in various regional conflicts, including the civil wars in Syria and Yemen.
• Where Iran supports the Assad regime and Houthi rebels, respectively, while Israel opposes Iranian influence in these countries.

Impact on India:

• Conflict between Israel and oil-rich Iran could disrupt oil supply from the region, leading to a rise in oil prices globally.
• India imports around 2 million barrels of crude oil daily through the strategic Strait of Hormuz located at the mouth of the Persian Gulf. Any conflict or instability in the region would lead to supply shortages and increasing energy costs leading to inflation and constraining Economic Growth in India.
• The strategic connectivity interests of India might be affected. This includes the port of Chabahar in Iran, linking India to Afghanistan and Central Asia.
• Shipping disruption in the Red Sea would affect the trade in the region.
• A disturbance here could lead to delays, increased shipping costs, and instability in global trade.