The war in Iran has triggered a sweeping energy crisis that is reverberating across Asia, the region hardest hit outside the Middle East. Heavily dependent on Middle Eastern fuel imports and tightly interconnected through complex supply chains, many Asian economies are now facing soaring energy costs, disrupted trade and mounting financial strain. Experts warn that if the conflict continues, several countries could slip into recession and unrest.

Transportation networks were among the first to feel the shock. Tens of thousands of flights have been canceled worldwide, with the Asia-Pacific region accounting for the largest share. Jet fuel prices have nearly doubled, airlines are slashing routes and some carriers risk collapse. Prolonged disruptions could push air traffic levels back decades, undermining tourism, trade and business travel.

Manufacturing hubs are also under pressure as supplies of natural gas, petroleum byproducts and industrial gases run low. Production of metals, textiles and semiconductors has slowed, threatening global supply chains for electronics, clothing and automobiles. Rising fertilizer and fuel costs are compounding food price increases, deepening economic stress.

A new United Nations report estimates that millions across Asia and the Pacific could fall into poverty if hostilities persist. From factory workers in India to farmers in the Philippines, many are already feeling the strain through job losses, strikes and unaffordable transport costs. Even if a peace deal is reached, the forces of scarcity and inflation unleashed by the war may linger for months, reshaping the region’s economic outlook.