Tue, Mar 17,
Insights
At a recent special virtual emergency meeting, ASEAN foreign ministers cautioned that continued escalation of the Middle East war will severely hit global trade, energy markets and economic stability in Southeast Asia.
Any prolonged conflict could significantly disrupt oil and gas shipments, trigger price volatility and drive up transportation costs across Asia, they noted.
At a recent special virtual emergency meeting of foreign ministers of the Association of Southeast Asian Nations (ASEAN), participants cautioned that continued escalation of the war in the Middle East will severely affect global trade, energy markets and economic stability in Southeast Asia.
“The ministers expressed deep concern over the widening conflict and its potential to destabilise not only the Middle East but also global economic systems,” a statement issued after the meeting said.
The ASEAN ministers said the expanding conflict threatens civilian lives and risks disrupting key global supply routes.
As Southeast Asian economies heavily depend on global energy markets and maritime trade flows, many of which pass through strategic chokepoints linked to the Middle East, any prolonged conflict could significantly disrupt oil and gas shipments, trigger price volatility and drive up transportation costs across Asia, they noted.
Disruptions could worsen inflationary pressures and increase the cost of living across the region, they said.
Rising tensions could disrupt maritime transport and aviation routes, causing delays and raising insurance and freight costs, and any slowdown in logistics could undermine industrial output and regional trade growth, they observed.
The ministers cautioned that prolonged instability could trigger broader macroeconomic challenges, including financial market volatility, weakening investor confidence and disruptions to food supply chains.
Higher energy costs could translate into more expensive agricultural production and transportation, further pushing up food prices across Southeast Asia, they added.