Asia Reels From Iran War Supply Shock as Flights Cut, Factories Pause, Shelves Go Bare

Overview

• The Asia-Pacific is now seeing sudden supply shocks from the Iran war, and officials say a few more weeks of shipping snarls could tip some countries into unrest and recession.
• Airlines have slashed routes as jet fuel tightens, with experts estimating Asia-Pacific air traffic down by about a third and Malaysia’s Batik Air cutting flights by 35 percent.
• Shortages of gas and petrochemicals are stalling production, from Bangladesh garment hubs and Indonesian nickel plants to chipmakers facing a helium crunch after Qatar shut output.
• Daily life is straining as hotel bookings collapse in Sri Lanka, drivers strike in Manila over fuel costs, Indian industrial zones close for lack of fuel, and some farmers let crops rot.
• The IMF reports slower growth as about one-fifth of global oil and liquefied gas stays cut off, and a UN estimate warns up to 8.8 million people in the region could fall into poverty this year.