Escalating conflict in the Middle East is sending shockwaves through Asian energy markets, with oil prices showing increased volatility. Asia, which relies heavily on energy imports from the region, is particularly vulnerable to supply disruptions.

Economists warn that sustained price increases could reignite inflationary pressures across energy-importing economies. Governments are monitoring developments closely, with some exploring strategic reserve releases to cushion potential shocks.

Energy analysts say geopolitical risks are now a key driver of market sentiment, compounding existing concerns over supply constraints and global demand fluctuations.

For Asian economies still recovering from recent crises, prolonged instability in the Middle East could complicate monetary policy and fiscal planning, underscoring the interconnected nature of global geopolitics and energy security.