ME tensions threaten to strain Asian economies: Moody’s

A broader or more drawn-out conflict in the Middle East would risk increasing the strain on emerging Asian economies that have, in past years, struggled with external debt repayment, according to Moody’s Analytics. It said in a commentary on the implications of conflict in the Middle East over APAC economies that the surge in energy and food prices after Russia’s invasion of Ukraine played a key role in the crises in Sri Lanka, Bangladesh, and Pakistan. A sustained disruption to Gulf oil exports or maritime traffic could revive debt concerns. Conflict in the Middle East intensified over the weekend as the U.S. and Israel launched military strikes on targets in Iran. Tehran retaliated with missiles and drones aimed at Israel and countries hosting U.S. forces, including the United Arab Emirates, Qatar, Kuwait, Bahrain, Iraq, Jordan, and Saudi Arabia.