ASEAN economies are facing pressure as the unresolved Iran conflict raises oil and shipping costs, and inflation risk grows while trade slows.
Experts say the 2026 outlook is more uncertain as global energy markets tighten and investors watch Asia closely, affecting markets, jobs, and consumer confidence across the region.
Strait of Hormuz Oil Risk Drives Energy Cost Surge
Risks in the Strait of Hormuz are pushing up oil prices and raising transport and energy costs across Southeast Asia. As a result, the World Bank has cut regional growth forecasts by about 1 percent.
The on-and-off blockade could further worsen inflation and slow trade, raising fears of "stagflation." ASEAN governments now face rising import bills that affect businesses and household prices across the region in daily life costs everywhere rising.
China Slowdown Adds Pressure
China has also been impacted. It reduced its 2026 growth target from around 5 percent down to 4.5
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