Trending:US-Israel-Iran warIran new supreme leaderIran war falloutT20 World CupHoli 2026OpenAI military contractadvertisementAsia most vulnerable to oil shock as West Asia conflict threatens macro outlook, says InvescoFP News Desk • March 4, 2026, 14:29:06 ISTWhatsapp Facebook TwitteradvertisementProlonged tensions in the Gulf could push up oil prices, pressure Asian currencies and equities, and widen macro risks for oil-importing economies such as India, according to a new report. AdvertisementSubscribe Join Us+ Follow us On GoogleSmoke rises in the Fujairah oil industry zone following a fire caused by debris after interception of a drone by air defenses, according to the Fujairah media office, amid the US-Israel conflict with Iran in Fujairah, United Arab Emirates, on March 3, 2026. (Photo: Amr Alfiky/Reuters)Asia remains the most vulnerable region globally to sustained increases in oil prices due to its heavy dependence on imported energy and its highly trade-exposed economies, according to a new report by global investment manager Invesco. In a report titled ‘Middle East Tensions – Impact on Asia’, Invesco warned that a prolonged geopolitical shock in West Asia that disrupts crude exports from the Gulf could materially affect the region’s macroeconomic outlook, financial markets and currencies. STORY CONTINUES BELOW THIS AD“A sustained move higher in oil prices would be negative for stocks, including Asian equities,” the report said, noting that the impact on financial markets would depend largely on the duration and intensity of the conflict. More from Business Iran war impact: Windfall for American LNG exporters amid oil price surge Dollar surges to three-month high as Iran war pushes investors to look for safety, global equities fallHowever, the report added that if the geopolitical tensions ease quickly, the negative impact on Asian markets is likely to remain short-lived. Asia’s vulnerability stems largely from its heavy reliance on imported energy and the region’s openness to global trade flows. Major oil-importing economies such as India, Japan and South Korea remain particularly exposed to energy price shocks, especially if supply disruptions occur in the Gulf. The report highlighted that currencies such as the Indian rupee and the Korean won could face near-term headwinds if oil prices remain elevated, reflecting higher import bills and increased pressure on current account balances. Quick ReadsView AllIran war impact: Windfall for American LNG exporters amid oil price surgeDollar surges to three-month high as Iran war pushes investors to look for safety, global equities fallAt the same time, the impact across the region is unlikely to be uniform.
