Asia’s energy-reliant economies face ‘existential threat’ from prolonged Iran war
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Asia's energy-reliant economies are facing an "existential threat" from a prolonged Iran war, which could lead to sustained disruption to global oil supplies and significantly higher fuel costs. Economists warn that a conflict lasting several weeks could result in persistently higher prices, widening trade deficits, and slower economic growth for countries such as Pakistan, India, Morocco, Thailand, China, the Philippines, and Indonesia. These nations are particularly vulnerable due to their high energy deficits, which exceed 4% of GDP. The Strait of Hormuz, a critical shipping route near Iran, is at risk of disruption, affecting global oil supplies. Spot prices for natural gas have more than doubled to three-year highs, reaching over $25 per MMBtu. A prolonged war could exacerbate these challenges and have far-reaching economic consequences for the region.
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AI-ExtractedSpot prices for natural gas have more than doubled to three-year highs, reaching over US$25 per MMBtu.
Energy deficits exceed 4 per cent of GDP in Morocco, Pakistan and Thailand.
Pakistan and India are among emerging markets most exposed to sustained disruption to traffic through the Strait of Hormuz.
A war lasting several weeks could leave Asian importers facing persistently higher fuel costs, widening trade deficits and slower economic growth.
Asian economies reliant on energy imports face an 'existential threat' from a prolonged Iran war.
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