Adani Ports operates the Haifa Port in Israel, which on Sunday confirmed that its port assets and infrastructure are fully secure and in operational condition. “Haifa Port Company confirms that all its employees are safe, and all port assets and infrastructure are fully secure and in operational condition,” APSEZ said in a statement.
It added that it will continuously monitor the situation and coordinate with the Ministry of Transport and Road Safety. “We remain committed to ensuring the safety of our people and the continuity of operations, maintaining stability for Israel’s supply chain and international trade,” the port authority said.
Port says all is well, but war escalates
However, the war has significantly escalated since the statement from Haifa port. Iran attacked Israel and other Gulf cities hosting US forces as retaliation, leading to several deaths, including those of civilians. The US and Israel, in turn, further increased their military strikes, and the war now shows no sign of cooling down in the oil-rich Middle East.
US President Donald Trump on Sunday said that he was prepared to talk and resolve the conflict. He added that he expects a four-week military operation against Iran. “As strong as it is, it’s a big country, it’ll take four weeks – or less,” he told the British newspaper The Daily Mail.
Also read: Iran-Israel war: Over 30 listed Indian companies face Middle East exposure risk. Are you holding these stocks?
However, Iran said it will not negotiate. “(Trump) turned his self-made ‘America First’ slogan into ‘Israel First’ and sacrificed American soldiers for Israel’s power-hungry ambitions,” Iran’s Supreme National Security Council, Ali Larijani, said in a post on X.
Why are Adani Ports shares falling?
While no disruption has been reported yet at the Haifa port, the escalating war raises concerns about what lies ahead. Additionally, the mounting tensions may lead to some trade disruption, which may further affect the port.
The Middle East and North Africa (MENA) region accounted for 31% of India’s export-import cargo. JM Financial said that Adani Ports can be adversely impacted by cargo volumes (oil tankers/LNG and containers) that transit from the Persian Gulf, as the company accounted for 27% of India’s cargo volumes with large export-import exposure.
It, however, dismissed worries around Haifa port. “We are not concerned about Haifa (Israel) exposure as we estimate it to contribute a modest 1.5% to ADSEZ’s FY26E EBITDA. Thus, even a prolonged disruption in Israel does not have a significant bearing on ADSEZ’s overall performance. ADSEZ’s other international ports (Tanzania, Australia and Colombo) may not be impacted as they are quite distant from the conflict zones. Its Marine Services in the Gulf may feel the heat,” the domestic brokerage said in its latest report.
Adani Ports operates a total of 19 ports and terminals, including 15 in India and 4 international ports across Australia, Colombo, Israel, and Tanzania. The company had acquired the Haifa port in Israel for nearly $1.2 billion back in 2023. The port has been in the centre of a country marred by geopolitical tensions since Adani’s takeover.
Also Read | Explained: What US-Israel war on Iran means for Indian stock market investors, crude oil and exports
Earlier in June last year, Iran had targeted the port and a nearby oil refinery amid tensions with Israel. Sharpnels reportedly fell in the chemical terminal at the port, and some other projectiles fell at the oil refinery, although there were no injuries. The company’s management later said the port remained unharmed.
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