Singapore's foreign minister Vivian Balakrishnan warned that the war against Iran and the closure of the Strait of Hormuz threaten to push Asian economies into crisis, describing the situation as effectively 'an Asian crisis'. He said the conflict has taken the global economy hostage and raised concerns about the necessity and legality of the military action as it enters its fourth week.

The shutdown of the vital waterway, which carries about one fifth of global oil and significant volumes of liquefied natural gas, has driven up energy prices and heightened fears of renewed global inflation. Asia, which imports the majority of its crude oil and petrochemical feedstock from the Middle East, is particularly vulnerable. Refineries and petrochemical plants across the region have scaled back operations, and some countries have halted refined fuel exports.

Balakrishnan cautioned that further escalation, including potential attacks on energy infrastructure, could cause prolonged damage to supply and sustain high oil and gas prices. While it is too early to predict whether the fallout will match the Asian financial crisis of the late nineteen nineties, Singapore is reviewing contingency plans to safeguard stability and adapt to shifting supply chains.

He also expressed disappointment that talks between the United States and Iran collapsed and said Singapore does not want to be forced to choose between major powers, emphasizing that its decisions will be guided by long-term national interests. He urged Asian countries to accelerate renewable energy development, strengthen infrastructure, retrain workers, and maintain fiscal discipline to weather the turmoil.