Asia’s initial buffers against the Iran war’s energy shock are fraying as a second wave of impacts hits. Governments that had hoped the war would end soon leaned on stopgap fixes, like burning through their energy reserves, bidding on the spot market for oil and gas and ordering policies to save power.
One evacuated passenger tests positive for hantavirus and another develops symptoms on flight homeOregon Democrats found a way to improve roads. Now their gas tax goes before voters as prices soarSpieth and Scheffler are one leg from the career Grand Slam.
It looks farther away for SpiethAP Entertainment WireNipper, stay! The future of a beloved dog statue on a New York warehouse is up in the airFatou, the world's oldest gorilla living in captivity, celebrates her 69th birthday at Berlin ZooOne Tech Tip: Why digital devices and online accounts need spring cleaningA photo captures President Trump and first lady awaiting British royals from rare White House angleThe World in PicturesTrump is lifting restrictions on hunting in national parks, refuges and wilderness areasFDA announces its first OK of fruit-flavored e-cigarettes for adults in major shift under TrumpHealth advice is all over social media.
Here's how to vet claimsDid you find an animal nesting near your house? Here's what to doVatican sending new signals of openness but limitations in outreach to LGBTQ+ CatholicsTrump rejects Iran's response to latest US proposal to end the warThe Afternoon WireUFC 328 goes on without Trump, Van defends 125-pound crown, Strickland wins middleweight titleThe Cannes Film Festival is about to begin.
Here are the key films making their debutViral phenomenon in Argentina has young people identifying themselves as animals1 million bees make for bumper-to-buzzer traffic on a Tennessee highway rampHow 2 men claimed an absurd record by driving an old 3-wheel car the length of AfricaHealth advice is all over social media. Here's how to vet claimsA PGA golfer took his shirt off and approached a gator-filled hazard.
AP's photographer was readyTrump is lifting restrictions on hunting in national parks, refuges and wilderness areasFDA announces its first OK of fruit-flavored e-cigarettes for adults in major shift under TrumpHealth advice is all over social media. Here's how to vet claimsDid you find an animal nesting near your house?
Here's what to doVatican sending new signals of openness but limitations in outreach to LGBTQ+ CatholicsGasoline drops from the nozzle of a fuel pump as it fills a motorcycle as prices continue to rise at a gasoline station in Quezon City, Philippines on March 19, 2026. Protesters hold slogans beside police during a rally by transport workers and activists protesting the rise in oil prices on March 27, 2026, near the Malacanang presidential palace in Manila, Philippines.
Atul Lahkar, from the Assam region, chef lights a fire with wood and coal to prepare food for his restaurant following a regional gas shortage in Guwahati, India, on March 19, 2026. An ANA jet flies above a gas station in Inglewood, Calif. , on May 6, 2026.
Gasoline drops from the nozzle of a fuel pump as it fills a motorcycle as prices continue to rise at a gasoline station in Quezon City, Philippines on March 19, 2026. Gasoline drops from the nozzle of a fuel pump as it fills a motorcycle as prices continue to rise at a gasoline station in Quezon City, Philippines on March 19, 2026.
Protesters hold slogans beside police during a rally by transport workers and activists protesting the rise in oil prices on March 27, 2026, near the Malacanang presidential palace in Manila, Philippines. Protesters hold slogans beside police during a rally by transport workers and activists protesting the rise in oil prices on March 27, 2026, near the Malacanang presidential palace in Manila, Philippines.
Atul Lahkar, from the Assam region, chef lights a fire with wood and coal to prepare food for his restaurant following a regional gas shortage in Guwahati, India, on March 19, 2026. Atul Lahkar, from the Assam region, chef lights a fire with wood and coal to prepare food for his restaurant following a regional gas shortage in Guwahati, India, on March 19, 2026.
An ANA jet flies above a gas station in Inglewood, Calif. , on May 6, 2026. An ANA jet flies above a gas station in Inglewood, Calif. , on May 6, 2026.
to adapt to the closure of the Strait of Hormuz, a critical artery for energy flowing to Asia. They made: saving power at the risk of slowing businesses, prioritizing gas for households at the risk of fertilizer production and dipping into energy stockpiles for temporary relief. But these measures were based on the war lasting only a short time, allowing a quick resumption of energy flows. That has not happened..
Airfare costs, shipping rates and utility bills are climbing, jeopardizing economic growth. About 8.8 million people are in danger of being pushed into poverty and the conflict may cause $299 billion in economic losses to the Asia-Pacific region, according to the United Nations Development Program.
“The countries with the least resources to respond, or the consumers who can least afford to pay, are the ones who feel everything first,” said Samantha Gross of the U.S.-based think tank Brookings Institution. Asian governments planned their budgets assuming the price of oil would average around $70 a barrel. Subsidies helped to keep fuel prices stable. But the war pushed the price of Brent crude to as high as about $120 a barrel.
Governments now face a stark choice between maintaining those costly subsidies, straining public finances, or cutting them to pass higher costs on to consumers, risking a public backlash, said Ahmad Rafdi Endut, a Kuala Lumpur-based independent energy analyst. In India, early steps to redirect fuel supplies toward cooking gas for roughly 330 million households cut into supplies for fertilizer plants.
The surging of fertilizer prices and meteorologists warning of weak rainfall in anIndia has relied on subsidies to shield its 1.4 billion people until now, but on Sunday, Prime Minister Narendra Modi urged citizens to buy locally and cut down on travel abroad to save dollars. He also encouraged people to work from home and use public transport to reduce fuel consumption, and asked farmers to halve fertilizer use.to save fuel. It also rolled out targeted subsidies for poorer households.
However, Fitch Ratings noted that most consumers are still paying higher energy costs, causing business activity to slow in major cities like Manila. Thailand abandoned its diesel price cap less than a month after the conflict began, as its fuel subsidies ran out. It’s now cutting other spending to manage higher oil prices while trying to keep its budget under control. Vietnam extended a suspension of fuel taxes to ease pressure on domestic prices.
Jet fuel shortages have led to flight cuts. Tourism makes up nearly 8% of Vietnam’s gross domestic product — the nation’s total output of goods and services — so that affects the entire economy.
“Business is not good right now,” said Hanoi-based tour guide Nguyen Manh Thang. “There are already fewer tourists. ” Fuel shortages have pushed cash-strapped countries like Pakistan and Bangladesh to buy oil and gas at current market prices, which are often higher and more volatile than long-term contracts. This raises import costs and adds to pressure on their already limited foreign exchange reserves.
Governments can keep costly fuel subsidies by cutting spending from other priorities like welfare, or borrow more and risk higher inflation, said Endut in Kuala Lumpur. Alternatively, they can reduce subsidies and pass higher costs on to consumers, risking angering voters. Once subsidies are exhausted and inflation starts to rise, countries could face what he called a “fiscal time bomb. ”The war’s eventual end won’t bring quick respite to Asia.
The global oil and gas trade will not bounce back right away, and it will take time to restart production, said Gross with the Brookings Institution. Repairing damaged infrastructure, restarting facilities and allowing for transport time from the Middle East to final markets will take weeks or even months.across the U.S. But Southeast Asia is currently the “biggest pain point,” said Henning Gloystein of the Eurasia Group consultancy firm.are similarly straining budgets, widening deficits and driving up inflation.
The war is also taking a toll on Latin America and the Caribbean, where The complex disruptions across global supply chains will continue to have broader impacts, warned Ted Krantz, CEO of supply chain risk firm Interos.ai. The crisis also highlights the fragility of Asia’s growing middle class, said Maria Monica Wihardja of the Singapore-based ISEAS-Yusof Ishak Institute, with many people at risk of slipping back into poverty.
The energy shock will reshape Southeast Asia’s economies over time, she said, including shifts in job markets and how countries plan for future energy crises. The war is making geopolitical risk central to the economic outlook of Southeast Asia and directly slowing regional growth, said Albert Park of the Asian Development Bank. The Associated Press’ climate and environmental coverage receives financial support from multiple private foundations. The AP is solely responsible for all content.
Find AP’sGhosal covers the intersection of business and climate change in southeast Asia for The Associated Press. He is based out of Hanoi in Vietnam.
Iran War Oil And Gas Industry Subsidies General News International News Climate And Environment Narendra Modi International Trade Inflation Ted Krantz World News Business Transportation And Shipping Malaysia Government Energy Markets Government Policy War And Unrest Economy Iran 2024-2026 Mideast Wars Ahmad Rafdi Endut Samantha Gross Climate World News
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Trump throws his base a UFO bone, but critics say it’s Iran ‘smoke and mirrors’Some viewers reveled in the newly released UFO files, while others bristled at the administration’s timing.
Read more »
State and local governments gave failed Californians on homelessness fundingIf the government cannot track its own spending on homelessness programs, then it cannot effectively evaluate programs and service providers.
Read more »
Iran live updates: 'We'll see what happens,' Trump says on Iran response to proposalThe U.S. conducted strikes against Iranian targets on Thursday.
Read more »
Britain says it has deployed a warship to the Middle East, cleric speaks on Iranian flag; U.S. strikes two Iranian ships, Bahrain arrests people alleged linked to Iran's Revolutionary GuardBritain has deployed a warship to the Middle East for a potential mission to protect commercial ships in the Strait of Hormuz, a cleric holds an Iranian flag while speaking on his cellphone for a pro-government campaign in Tehran, Iran, hours after the United States struck two Iranian oil tankers. Bahrain arrested dozens of people it alleged had links to Iran’s Revolutionary Guard. Meanwhile, Washington is awaiting Iran’s response to its latest proposal for a deal to end the war, and the U.S. military disabled two Iranian tankers that were trying to breach the American blockade of Iran’s ports.
Read more »