Asia’s oil dependence leaves it exposed after US-Israel strikes on Iran: Morgan Stanley

South China Morning PostEN 1 min read 100% complete by Ralph JenningsMarch 2, 2026 at 02:30 PM

AI Summary

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Morgan Stanley warns that Asia's heavy reliance on oil and gas imports makes it particularly vulnerable to economic fallout following US and Israeli strikes on Iran. The report highlights that Asia's manufacturing-heavy, export-driven economies are more sensitive to oil price volatility than the US or Europe. Asia's oil and gas trade deficit is significant, and a sustained $10 per barrel increase in oil prices could reduce the region's GDP growth by 0.2 to 0.3 percentage points. The military actions against Iran and subsequent retaliatory attacks have raised concerns about disruptions to global energy supplies. Morgan Stanley suggests that ongoing geopolitical tensions could negatively impact Asia's macroeconomic outlook due to potential oil price spikes that would weigh on growth and stability.

Key Entities & Roles

Key Player Opposition Context

Tel Aviv 40% Washington 40% Chetan Ahya 60% Israel 70% Iran ×380% United States ×380% Asia ×690% Morgan Stanley ×290%

Keywords

oil dependence 90% oil prices 80% asia 80% geopolitical tensions 70% economic fallout 70% energy supplies 60% gdp growth 60% iran 50% supply chains 50% macro outlook 40%