Traders feeling war pinch

Despite the turmoil, some local companies spy opportunity in the Mideast, writes Jitsiree Thongnoi

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The war between the United States, Israel and Iran is sending ripples across global markets, with Thai exporters reporting disrupted trade flows and increased fuel and transport costs.

The conflict has triggered volatility in global oil prices and restricted access to the Strait of Hormuz, a critical maritime chokepoint for energy shipments.

This could sharply increase shipping costs and delay deliveries for Thai exporters reliant on Middle Eastern routes.

For exporter Ghanyapad Tantipi-patpong, the war is the biggest source of uncertainty in the many decades she has been in the field. She exports canned fruits and some seasoning products around the world, mainly to the United States and Europe.

Her business has weathered Covid-19 and other regional conflicts and uncertainties, but she says the US/ Israel strikes on Iran are different. "I think the conflict in the Middle East is more severe than Covid-19," she said.

"There was lower consumption during Covid and everybody was spending less. But this war affects the whole global manufacturing industry. There will be less consumption and higher costs. While the war on Iraq and Afghanistan had some effects, it was a short-term thing. I don't see the end of this war yet."

Thai exporters, including Ms Ghan-yapad, enjoyed a recent trade surge only to face a disruption when Israel and the United States launched their strikes on Iran on Feb 28.