The escalating conflict between Iran and Israel is causing significant disruptions across Asia, impacting markets, oil prices, export payments, and air traffic. Asia depends heavily on Middle Eastern oil, with over 80% of its crude oil imports originating from this region and primarily transported through the strategic Strait of Hormuz. Recent US strikes on Iranian nuclear facilities have heightened fears of further escalation and interruptions in oil supply.
Impact on Asian Exports
In Haryana, India, which accounts for 30% of India’s basmati rice exports to Iran, exporters are experiencing major challenges such as:
- Delays in shipments
- Payment hold-ups
- Chaotic ship movements due to the ongoing conflict
Market Reactions and Air Traffic Disruptions
Asian stock markets have shown declines amid the conflict, while oil prices have surged to five-month highs, reflecting widespread investor concerns. Additionally, air travel to West Asia is affected as Qatar and the UAE have closed their airspace in response to the conflict, causing numerous delays and flight diversions.
Political and Diplomatic Responses
US political figures, including Donald Trump, have voiced opposition to further military involvement in West Asia. Concurrently, United Nations Secretary-General Antonio Guterres has made urgent calls for de-escalation and diplomacy to resolve tensions.
Outlook for Asia
Industries and companies across Asia are adopting a cautious stance amid uncertainties in global supply chains and fluctuating fuel prices. The situation over the coming days will play a crucial role in shaping the region’s economic outlook and stability.
Stay tuned to Questiqa World News for the latest updates.
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