Israel officials are stepping up efforts in recent weeks to advance a proposed trade corridor linking India to Europe via the Gulf, Jordan and Israel, as concerns grow over Iran’s influence in the Strait of Hormuz, officials said.
The initiative, known as the India-Middle East-Europe Economic Corridor, or IMEC, is intended to provide an alternative trade route that bypasses the strategic waterway, where Iran has disrupted shipping during the conflict.
Israel officials say such a corridor could significantly reduce Iran’s leverage over the global economy and help ensure that international trade considerations do not constrain Israel’s military options in the future.
The project was announced by the Biden administration weeks before the Oct. 7 attack, but Israel’s role has become more complex following the war in Gaza.
Officials in the Foreign Ministry and Finance Ministry now view the current situation as a rare window of opportunity and are working to accelerate the project amid ongoing regional tensions.
One of the main challenges is securing Saudi Arabia’s participation. Officials familiar with the discussions said Riyadh has shown less enthusiasm for the initiative compared with other Gulf states, and no concrete solution has yet been reached.
Despite the obstacles, officials said this marks the first time since Oct. 7 that substantive work is being carried out in Israel to advance the corridor.
Sources in contact with Gulf countries said efforts are underway to find a workable framework and move the project forward, driven in part by the ongoing conflict with Iran and the risks highlighted by disruptions in the Strait of Hormuz.