Iran War Forces Nearly One Million Indian Gulf Workers Home

The Iran war has stranded thousands of Indian seafarers on vessels at Iranian ports and triggered the return of nearly one million Indian migrant workers from the Gulf region, according to multiple reports. The conflict has effectively closed the Strait of Hormuz, one of the world's busiest shipping routes, forcing businesses to reroute ships through the Panama Canal at costs reaching up to $4 million per crossing. Three Indian sailors have died during the ongoing hostilities, and two Indian-flagged vessels were fired upon by Iran's Islamic Revolutionary Guard Corps on April 18 while attempting to transit through the strategic waterway. Indian seafarers Ankit Yadav and Salman Siddiqui are among those trapped at Khorramshahr port in Iran, surviving on minimal rations while unable to secure passage home. Siddiqui described the harrowing experience of hearing more than 100 explosions and watching projectiles fly near vessels. Both men say their shipping companies refuse to sign them off due to costs, leaving government repatriation as their only viable option. The Panama Canal Authority confirmed that businesses are paying premium fees to reroute cargo, with typical crossings of 300,000 to 400,000 pounds now costing additional millions of dollars for expedited passage. Panama's government has also been affected, accusing Iran of seizing a Panama-flagged vessel in the Strait. India's shipping ministry has facilitated the repatriation of approximately 2,680 Indian seafarers since the conflict began, while the Ministry of External Affairs reports that 984,000 Indian nationals flew home between late February and mid-April. The economic toll is spreading beyond the immediate crisis, with industries like Dubai's hospitality sector experiencing sharp occupancy drops, prompting layoffs of workers like Meera Kurian. Kerala, India's largest recipient of remittances with nearly 90 percent of its 2.2 million overseas citizens working in Gulf states, is already reporting declines in domestic consumption and sales. Economists warn that a prolonged conflict could trigger a significant labor shock, with effects extending to household debt, housing markets, and state finances across India.