Adani Ports shares plunge 6% as escalating war between Iran and Israel raises concerns around Haifa port

Shares of Adani Ports and the Special Economic Zone fell about 6% on Monday as geopolitical tensions flared in the Middle East, with Iran retaliating against the US and Israel and calling off talks after the death of its supreme leader, Ayatollah Ali Khamenei.Adani Ports operates the Port of Haifa in Israel, which confirmed on Sunday that its port assets and infrastructure are fully secure and in operational condition. “Haifa Port Company confirms that all its employees are safe and that 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 continuity of operations, and maintaining stability for the Israeli supply chain and international trade,” the port authority said.

Port says everything is going well, but the war is escalating

However, the war has escalated significantly since the declaration from the port of Haifa. Iran attacked Israel and other Gulf cities hosting US troops in retaliation, leading to several deaths, including those of civilians. The US and Israel in turn increased their military attacks, and the war shows no signs of easing in the oil-rich Middle East.

US President Donald Trump said on Sunday he was ready to talk and resolve the conflict. He added that he expects a four-week military operation against Iran. “As strong as it is, it is a big country, it will take four weeks – or less,” he told British newspaper The Daily Mail.

Also read: Iran-Israel War: More than 30 listed Indian companies at risk of Middle East exposure. Do you hold these shares?

However, Iran said it will not negotiate. “(Trump) changed his self-made ‘America First’ slogan to ‘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?

Although no disruptions at Haifa’s port have yet been reported, the escalating war raises concerns about what lies ahead. In addition, the rising tensions may lead to some disruption to trade, which could further impact the port.

The Middle East and North Africa (MENA) region accounted for 31% of India’s export-import freight. JM Financial said Adani Ports could be negatively affected by cargo volumes (oil tankers/LNG and containers) transiting from the Persian Gulf as the company accounted for 27% of India’s cargo volumes with high export-import exposure.

However, it dismissed concerns surrounding Haifa’s port. “We are not concerned about the exposure to Haifa (Israel) as we estimate it will make a modest 1.5% contribution to ADSEZ’s FY26E EBITDA. Thus, even a prolonged disruption in Israel will not have a significant impact on ADSEZ’s overall performance. ADSEZ’s other international ports (Tanzania, Australia and Colombo) may not be affected as they are quite far from the conflict zones. The maritime services in the Gulf can feeling heat,” the domestic brokerage said in its report. latest report.

Adani Ports operates a total of 19 ports and terminals, including 15 in India and 4 international ports in Australia, Colombo, Israel and Tanzania. The company had acquired Israel’s Haifa Port in 2023 for nearly $1.2 billion. Since Adani’s takeover, the port has found itself at the center of a country marred by geopolitical tensions.

Also read | Explained: What the US-Israeli war on Iran means for Indian stock market investors, crude oil and exports

Earlier in June last year, Iran targeted the port and a nearby oil refinery amid tensions with Israel. Sharpnels reportedly fell at the chemical terminal at the port, and some other projectiles fell at the oil refinery, although no injuries were reported. The company’s management later said the port was unharmed.

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