The war involving Iran is sending economic shockwaves far beyond the Middle East, with Thailand and Singapore among the Asian economies most exposed to the ripple effects of surging energy prices and disrupted trade routes.

The conflict has shaken global energy markets by threatening the Strait of Hormuz, a narrow maritime corridor through which roughly a fifth of the world’s oil and liquefied natural gas normally passes.

Disruptions along the route have driven oil prices sharply higher and created new uncertainty for countries across Asia that rely heavily on imported fuel.

Asia receives the majority of energy shipments moving through the strait, making the region particularly sensitive to any interruption in supply.

Thailand faces significant vulnerability because of its heavy dependence on imported oil and gas.

Economists note that the country has one of the largest energy trade deficits in Asia, meaning that rising global fuel prices quickly translate into higher import bills and pressure on government finances.

Higher energy costs also raise production expenses for Thai manufacturers and exporters, potentially weakening competitiveness in global markets.

Authorities in Bangkok have already taken precautionary steps to safeguard domestic supply, including suspending exports of certain petroleum products and encouraging conservation as the government monitors global energy markets.

The surge in oil prices also threatens to push up inflation and transport costs across the Thai economy, affecting households and businesses alike.

Singapore, though wealthier and more diversified, faces its own risks due to its role as a global trading hub.

The city-state relies heavily on imported energy and operates one of the world’s busiest shipping and refining centres.

Higher oil and gas prices can raise operating costs for industries ranging from aviation to petrochemicals, while disruptions to maritime routes increase shipping costs and delay cargo movements.

Singaporean officials have warned that prolonged instability in the Middle East could translate into higher domestic prices and economic pressure.

As a highly open economy dependent on global trade flows, the country is sensitive to disruptions affecting shipping lanes, supply chains and energy markets.

Both economies also face indirect risks from slowing global growth if energy prices remain elevated.

Higher fuel costs typically ripple through transportation, manufacturing and food production, potentially dampening demand across international markets on which export-oriented Asian economies depend.

The conflict has also highlighted broader energy-security concerns across Southeast Asia.

Analysts say the current crisis underscores the region’s dependence on imported fossil fuels and the strategic importance of diversifying energy sources and supply routes.

While the fighting remains geographically distant, the economic consequences are being felt across Asia’s interconnected economies.

For Thailand and Singapore, the conflict serves as a reminder that geopolitical shocks in critical energy corridors can rapidly reshape global trade and economic stability.