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GlobalizationIndia

How Iran war is crushing India's diamond industry

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Adil Bhat Surat, India | Sharique Ahmad Surat, India
May 24, 2026

Surat's diamond industry is in deep crisis as sanctions and the US-Iran war disrupt supply chains, cut exports and leave thousands of workers without jobs.

Surat, often called the global diamond capital, is under mounting pressure as geopolitical tensions disrupt one of India's most critical export industries. The city — responsible for cutting and polishing the vast majority of the world's diamonds — is grappling with supply chain disruptions, rising shipping and insurance costs, and reduced demand in key markets.

Industry figures say sanctions on Russian diamonds and escalating Middle East conflicts have intensified an already fragile situation, forcing factory closures, layoffs and pay cuts. Workers report unpaid wages and growing financial stress, highlighting the human toll of a global trade slowdown.

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