A 30% drop in oil imports from the Persian Gulf threatens growth and risks stagflation across Asian economies.
Asian economies are grappling with a sharp decline in oil and gas supplies from the Persian Gulf, triggering economic slowdowns and stagflation risks. The region imports 85% of its oil from Gulf countries, leaving it exposed to the current supply shock.
Oil imports fell by 30% last month, exacerbating vulnerabilities in energy-dependent industries. Analysts warn the downturn could deepen in the coming quarters, with growth forecasts already revised downward.
Markets are pricing in higher energy costs and reduced industrial output, though no immediate asset reactions have been reported.