The death of Iran's leadership through US-Israeli airstrikes has left Asia in a state of shock.
Beijing condemns the attacks as a violation of international law, and in the economic metropolises from Tokyo to Seoul, fear is growing of a total supply shutdown.
Diplomatic rupture
Beijing and Moscow sharply criticize the military escalation and the attempted "regime change." Concern is equally great in Southeast Asia:
China: Describes the targeted strikes as unacceptable and calls for an immediate ceasefire to prevent a wider conflict in the Persian Gulf.
Southeast Asia: Malaysia and Indonesia warn of a global catastrophe and see the stability of the entire "Global South" at risk.
Japan: Caught in a dilemma between loyalty to ally USA and massive dependence on Iranian energy sources.
Economic consequences
Brent crude could rise from $73 to $100 if Iran permanently blocks the Strait of Hormuz. This would increase global inflation by 0.6-0.7 percentage points.
Japan particularly affected: 90% of crude oil imports come from the Middle East. Nomura Research estimates a GDP drop of 0.65 percentage points with an oil price jump to $140.
Summit meeting in Beijing
The planned meeting between Donald Trump and Xi Jinping at the end of March is gaining massive significance. China will likely use the crisis as leverage to force concessions on trade tariffs.
Sources: CNA, Politico, Japan Times
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