Prolonged Middle East conflict and Hormuz closure could affect energy prices, supply chains

Analysts are concerned that prolonged instability in the Middle East and the closure of the Strait of Hormuz could lead to higher energy costs, with ripple effects for trade-dependent economies such as Singapore. A significant share of the oil and gas powering Asia passes through the Strait of Hormuz. Shipping firms are reassessing operational plans, with oil tankers and cargo ships expecting delays and congestion. The Monetary Authority of Singapore said it is monitoring developments and assessing risks to the economy. It also stands ready to respond if necessary to safeguard price stability. Sherlyn Seah reports.