Singapore's Foreign Minister Vivian Balakrishnan warned that a US-Israeli war on Iran and the closure of the Strait of Hormuz threaten to push Asian economies into crisis.
The minister described the situation as an "Asian crisis" in the making due to the heavy reliance on Middle Eastern oil.
In an interview with Reuters, he said that the closure of the Strait of Hormuz, through which about 20% of the world's oil and gas passes, has driven up prices and increased the risk of inflation. He also raised questions about the necessity and legitimacy of the US-Israeli war on Iran, now in its fourth week, asserting that "the entire global economy is now held hostage" to a conflict that could trigger a new financial crisis.
He added that about 80% of the oil that passes through Hormuz is destined for Asia, where countries such as China have begun to halt exports of petroleum products, while Asian refineries have reduced their production or declared force majeure.
The minister believed that the escalation of mutual attacks on energy infrastructure could prolong supply shortages and keep oil and gas prices high, bringing back memories of financial crises like the Asian crisis of the late 1990s, calling on countries in the region to accelerate the transition to renewable energy and strengthen cooperation to confront the shock.
