Asia’s temporary measures to cope with energy disruptions from the Iran war are depleting as the conflict continues without a clear end, causing ripple effects across economies including rising airfare, shipping costs and utility bills. Governments that budgeted for oil at around $70 per barrel now face Brent crude prices near $120, forcing difficult choices between maintaining costly subsidies or passing higher costs to consumers. The United Nations Development Program estimates the conflict could push 8.8 million people into poverty and cause $299 billion in economic losses across the Asia-Pacific region.
- 🏛️ India’s redirection of fuel supplies toward cooking gas for roughly 330 million households has cut into fertilizer plant supplies, with meteorologists warning of weak rainfall in an El Niño year affecting the world’s largest rice exporter.
- ✈️ Vietnam extended a suspension of fuel taxes to ease domestic prices, but jet fuel shortages have led to flight cuts, and tourism makes up nearly 8% of the nation’s gross domestic product.
- 💰 Pakistan and Bangladesh, as cash-strapped countries, have been forced to buy oil and gas at current market prices rather than long-term contracts, raising import costs and adding pressure to their limited foreign exchange reserves.
Source: AP News – Read the full article →
