Asia's Fragile Economies: Pakistan, Bangladesh Exposed to US-Iran Conflict Risks

New Delhi, August 2nd - The prolonged US-Iran conflict has been fueling oil price surges globally, posing significant economic risks to Pakistan and Bangladesh. Both countries heavily rely on imported fuel, making them vulnerable to sustained increases in crude oil and diesel prices.

A report by South China Morning Post notes that limited fuel inventories and weak economic buffers could quickly translate higher global energy costs into domestic prices, affecting millions of households through increased transport, electricity, and food costs.

Jamus Lim, Associate Professor of Economics at ESSEC Business School Asia-Pacific, warns of significant inflationary pressures for Pakistan and Bangladesh in the near term. With limited inventory buffers, he notes that the impact of higher oil prices would be transmitted relatively quickly through their economies.