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Asia braces for a second wave of energy shocks from the Iran war
Governments are cutting subsidies and tapping stockpiles as Brent crude rises to about $120 a barrel, threatening poverty and $299 billion in losses, the UNDP said.
- Asia's initial defenses against energy shocks from the Iran war are failing as subsidies run short, forcing governments to choose between maintaining costly support programs or passing higher costs to consumers.
- Budget plans for Asian governments assumed oil would average around $70 a barrel, but the conflict pushed Brent crude to about $120, while closure of the Strait of Hormuz forced rapid, unbudgeted adaptation.
- To conserve fuel, the Philippines shifted to a four-day work week, while India redirects supplies for roughly 330 million households and Vietnam faces flight cuts threatening tourism, which makes up nearly 8% of GDP.
- The United Nations Development Program projects $299 billion in economic losses for the Asia-Pacific region, pushing about 8.8 million people into poverty and creating what Kuala Lumpur-based analyst Ahmad Rafdi Endut calls a 'fiscal time bomb.'
- Southeast Asia remains the 'biggest pain point,' said Henning Gloystein of the Eurasia Group, and governments are prioritizing longer-term solutions like diversifying fossil fuel suppliers and developing nuclear energy and renewables.
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18 Articles
18 Articles
From Manila to Hanoi, Iran's war brings up prices and fears. How Asia receives a historic energy shock...Source
Coverage Details
Total News Sources18
Leaning Left9Leaning Right2Center2Last UpdatedBias Distribution69% Left
Bias Distribution
- 69% of the sources lean Left
69% Left
L 69%
C 16%
15%
Factuality
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