NEW DELHI - An attack on an Israeli diplomat in New Delhi may "dampen" and "hurt" India's efforts to carry on trade with sanctions-hit Iran, the head of India's rice trade body said on Tuesday, and may complicate efforts to resolve a trade payment impasse.
India has struck a defiant tone over new financial sanctions imposed by the United States and European Union to punish Iran for its nuclear program, seeking to increase trade and barter arrangements to pay for oil supplies.
But an attack on Israeli embassy staff member in New Delhi on Monday, which wounded four people, could add to uncertainties in trade between India and Iran, Vijay Setia, president of the All India Rice Exporters' Association, told Reuters.
"It will complicate matters further and hurt trade," Setia said, adding it was difficult to say how seriously trade could be affected.
"It (the tension generated by the attack) is a matter of concern and it will dampen trade sentiments between India and Iran," Setia said.