Iran War 2.0: Asia Braces for New Economic Shock

TOKYO — The ceasefire between the US and Iran has collapsed. Asia is now facing a second wave of economic fallout. The region had never fully recovered from the first round of tensions. It was already preparing for new shocks, especially rising food prices. The recent calm around the Strait of Hormuz felt less like a lasting peace and more like a short break. That break is now over. Analysts warn that renewed instability in the strait—a key passage for global oil shipments—will drive up energy costs across Asia. Higher fuel prices will likely push up the cost of food, transportation, and basic goods. Countries in the region, many still struggling with inflation, now face a new threat to their fragile economic recovery.