UK inflation rose to 3.3% due to rising energy costs driven by the Middle East conflict. This was primarily due to increases in fuel and food prices, raising concerns about future inflation. The Bank of England is expected to maintain its current interest rate policy while monitoring the economic situation.
South32 warns of rising mining costs and margin compression due to a prolonged Middle East conflict, implementing measures to mitigate supply chain shocks. The ongoing US-Iran tensions are disrupting global logistics through the Strait of Hormuz, creating uncertainty in commodity markets. Oil prices remain high, prompting market anticipation of an extended conflict.
Dutch consumer confidence has sharply declined due to concerns over the Middle East conflict, impacting household financial expectations. CBS data shows consumers are postponing major purchases due to rising fuel prices, with consumer confidence reaching historic lows. Experts believe this decline could signal slower economic activity.
The Strait of Hormuz was closed again due to the US-Israel conflict, causing disruption to the global energy supply chain and attacks on key energy infrastructure in the Gulf region. North African countries are emerging as alternative suppliers, while countries reliant on food and energy imports are facing severe economic crises. Algeria and Libya are particularly benefiting from increased energy exports.
Two out of three businesses in Singapore have been significantly affected by the Middle East conflict due to rising energy and logistics costs. SMEs are particularly vulnerable and exhibit lower confidence in managing the crisis compared to larger businesses. Companies are adapting through price increases and seeking government support, including tax rebates and energy efficiency grants.
The conflict in the Middle East is impacting retail prices in Britain, particularly food inflation. Similar to the Ukraine-Russia conflict, food prices are expected to rise significantly throughout 2026. The government needs to provide support to retailers, especially regarding non-commodity charges, to mitigate the impact on households.
The Middle East conflict is causing a Diet Coke shortage in India, primarily due to a shortage of aluminum cans. Despite attempts to import from overseas markets, the higher costs are a challenge, and domestic production capacity is also limited. This situation highlights the broader impact of the conflict on global energy supply chains.
A Singapore Business Federation survey found that two-thirds of businesses were affected by the Middle East conflict, with SMEs experiencing the most significant revenue declines. Companies are seeking additional financial support and logistics assistance amid rising energy and shipping costs. Concerns about long-term viability are high, prompting businesses to raise prices and implement cost-cutting measures.
Rising fuel prices contributed to a 3.3% increase in annual inflation in March, reflecting the impact of the Middle East conflict. Food inflation also rose, and despite potential relief measures, inflation is expected to increase further in the coming quarters. Government action is needed to mitigate the impact on consumers.
KBank’s Q1 2026 net profit increased by 42.71%, but the impact of the Middle East conflict hasn't yet been reflected. The bank cautioned that economic uncertainty poses risks to future performance. Net interest margin decreased despite overall profit growth.