Thai Economy Faces Pressure from US Campaign Against Iran

The US economic pressure campaign against Iran may soon expose Thailand to higher energy costs and unstable capital flows, warns Amonthep Chawla, assistant managing director and head of research at CIMB Thai Bank.

The measures taken by Washington could push up global oil prices, raising domestic production expenses and living costs in Thailand, while a prolonged confrontation could weaken confidence in trade and investment and disrupt international capital flows.

Bangkok could face pressure over whether to maintain normal commercial relations with Beijing despite possible US action. The city's economy is closely tied to China, its most important trading partner, and any disruption in their trade relationship could have significant consequences for Thailand.