India's trade deficit widened in June, with uncertainty over the US-Iran conflict and shipping through the Strait of Hormuz continuing to cloud the outlook for global supply chains. The widening gap reflects higher import costs driven by energy price volatility and disrupted maritime routes.

Elevated tensions in the Middle East have raised insurance premiums and freight rates for vessels transiting the critical chokepoint, through which a significant portion of India's crude oil imports pass. Any escalation could further strain the current account and pressure the rupee.

Policymakers are monitoring the situation closely, but options remain limited given the country's heavy reliance on imported energy. The Reserve Bank of India may face renewed pressure to intervene if currency depreciation accelerates.

Analysts warn that prolonged uncertainty could dampen investor sentiment and delay capital expenditure plans, adding to headwinds for an economy already navigating slowing global demand.