The extension of the Iran–US conflict is creating serious challenges for the global economy, and the Indian textile industry is also feeling the pressure. The conflict in the Middle East has pushed crude oil prices higher, which directly affects the textile sector. Many synthetic fibres such as polyester are made from petroleum. When oil prices rise, the cost of producing these fibres also increases. As a result, the prices of yarn, fabrics, and finished garments go up across the entire textile supply chain. Experts believe that if the conflict continues, production costs in the global textile industry may rise by around 10–15 percent. Higher fuel prices also increase transportation and logistics costs. Major textile centres in India such as Ludhiana, Panipat, Bhilwara, Ichalkaranchji, Surat and Tirupur are already experiencing higher yarn prices and reduced profit margins. Due to rising costs, many small and medium textile units may have to reduce production or temporarily shut down. This could affect millions of workers involved in spinning, weaving, and garment manufacturing. Another major concern is disruption in global trade routes. Due to instability in the Strait of Hormuz, ships carrying textile exports to Europe and the United States may have to take longer routes. This increases freight costs and delays deliveries. Since the textile industry depends heavily on timely shipments and works on thin profit margins, such delays may lead to order cancellations and loss of competitiveness. However, the crisis also creates an opportunity for change. Global conflicts often reshape supply chains and encourage industries to become more resilient. India can use this situation to promote sustainable fibres, strengthen domestic petrochemical production, and explore new export markets beyond the Middle East and Europe. Government support through incentives and better logistics can also help the industry manage these challenges. At this critical time, India must focus on turning these geopolitical challenges into opportunities by encouraging innovation, diversification, and long-term resilience in the textile sector.