Middle East tensions weigh on ASEAN

Rising oil prices adds to rising inflation pressures and uncertainty in region

The escalating conflict in the Middle East is weighing on the Southeast Asian economies amid tensions between Israel and Iran, adding to the economic woes in the ASEAN region which has seen boosted inflationary pressures and heightened uncertainty, analysts said.

Benchmark crude oil prices topped the $90 per barrel threshold on April 5, up nearly $8 a barrel from early March, according to the International Energy Agency.

Tensions have simmered in the region since the Gaza conflict broke out on Oct 7. The situation worsened after Israel bombed an Iranian diplomatic building in Syria on April 1 and Iran launched retaliatory strikes on Israel on April 13.