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The US-Israeli war on Iran threatens global energy. How is Asia preparing?

US President Donald Trump says the war on Iran may not last much longer. But across Asia, government actions are racing to shield themselves from the fallout – revealing a region gripped by anxiety that an energy shock could revive the spectre of stagflation. Under mounting economic pressure and record oil market volatility, Trump said on Monday that the US-Israeli war on Iran could be over “very soon”, though not within the coming week. The most exposed Asian economies – including South Korea...

Mar 11, 2026 &03001111202631; 02:00 UTC www.scmp.com Trending 3/5

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Negative for markets

Sentiment score: -65/100

High impact Immediate effect (hours)

WHAT THIS MEANS

Escalating US-Israeli tensions with Iran create significant energy security concerns across Asia, with governments implementing protective measures amid fears of oil price shocks and potential stagflation. Record oil market volatility and geopolitical uncertainty threaten global energy supplies, particularly impacting Asian economies heavily dependent on Middle Eastern crude imports.

AI CONFIDENCE

78% High

SENTIMENT GAUGE

NEWS POWER SCORE

AFFECTED ASSETS

⇅

Oil (WTI Crude)

CL=FCommodity

High volatility expected

Middle East geopolitical tensions create immediate crude oil supply uncertainty and price volatility

⇅

Euro / US Dollar

EURUSDCurrency

High volatility expected

Energy shock concerns and stagflation fears impact currency markets and risk sentiment

↓

Euro Stoxx 50

^STOXX50EIndex

Expected to decline

European energy-dependent economies vulnerable to oil supply disruptions and inflation pressures

↑

Gold Futures

GC=FCommodity

Expected to rise

Safe-haven demand increases amid geopolitical tensions and economic uncertainty

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10-Year Treasury Yield

^TNXBond

Expected to rise

Stagflation concerns push bond yields higher as inflation expectations rise

PRICE HISTORY

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⚡ SUGGESTED ACTION

Reduce exposure to energy-dependent Asian equities and cyclical sectors; increase defensive positions in gold and safe-haven assets. Monitor crude oil volatility (CL=F) closely as primary risk indicator; consider hedging strategies for inflation-sensitive portfolios given stagflation concerns.

KEY SIGNALS

Record oil market volatilityStagflation risk revivalAsian government defensive positioningEnergy supply chain vulnerabilityGeopolitical risk premium expansionAsian economic exposure to Middle East

SECTORS INVOLVED

EnergyTransportationUtilitiesFinancialsConsumer Discretionary

Analysis generated on Mar 11, 2026 at 02:08 UTC

Disclaimer: This analysis is generated by artificial intelligence for informational purposes only and does not constitute financial advice, investment recommendation, or solicitation. Original reporting by SCMP Business. Always conduct your own research and consult a qualified financial advisor before making investment decisions.

The US-Israeli war on Iran threatens global energy. How is Asia preparing?

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