Singapore warns Middle East war could trigger global economic storm

Singapore’s President Tharman Shanmugaratnam has warned that the ongoing conflict in the Middle East could trigger a “major economic downturn” and intensify inflation, adding stress to already fragile financial markets. The comments were made in a Facebook post, Bloomberg reports.

“Yet these economic problems are not the gravest challenge we face,” Tharman wrote. “We are looking at a long storm of global political instability.”

The warning comes as Israel and the United States continue their bombardment of Iran on the 19th day of a war that shows no sign of de-escalation. The conflict has disrupted global energy flows and financial markets, particularly due to the effective closure of the Strait of Hormuz, a critical shipping lane.

“Recent years have been marked by a growing resort to wars and destruction, disregard for the UN Charter, and discounting of international humanitarian law,” Tharman added, referencing the role of the United Nations.

The closure of the strait, he noted, has consequences beyond higher oil and gas prices. Reduced shipments of fertilizer are affecting food supply and prices, while other essential commodities, including aluminum and helium, are also being disrupted.

While largely a ceremonial role, Singapore’s elected president holds the power to veto withdrawals from the country’s significant but undisclosed reserves. Tharman said these reserves provide “strategic buffers” that will help Singapore navigate major crises.

By Vafa Guliyeva