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Middle East conflict threatens Asia's commodity importers
Daily FT
|March 03, 2026
MOODY'S Analytics has published the following new comment on the implications of conflict in the Middle East over Asia Pacific economies.
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Escalating hostilities in the Middle East risk renewed energy, trade and inflation shocks.
Conflict in the Middle East intensified over the weekend as the U.S. and Israel launched military strikes on targets in Iran. Tehran retaliated with missiles and drones aimed at Israel and countries hosting U.S. forces, including the United Arab Emirates, Qatar, Kuwait, Bahrain, Iraq, Jordan and Saudi Arabia. Media reports suggest the conflict has led to the effective closure of the Strait of Hormuz, a major oil shipping route. This raises the risk of further disruptions in the Red Sea and across the wider Middle East. Airspace closures have compounded the strain, affecting passenger travel and cargo flows through one of the world's most important trade corridors.
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