April 12: Impact of the US-Iran War on the International Economy, Financial Markets, and People's Livelihoods
The outbreak of the US-Iran war is having a severe impact on the global economy. Soaring crude oil prices have led to flight cancellations by airlines, a cost crisis in agriculture, disruptions in shipping, and pressure on citizens' daily lives, with wide-ranging effects.
📋 Article Processing Timeline
- 📰 Published: April 12, 2026 at 16:28
- 🔍 Collected: April 12, 2026 at 17:00 (32 min after Published)
- 🤖 AI Analyzed: April 13, 2026 at 08:43 (15h 43m after Collected)
● War Impacts Oil Prices: Cathay Pacific and Hong Kong Express to Reduce Flights from Mid-May to End of June
Hong Kong's Cathay Pacific and its subsidiary Hong Kong Express both announced flight reductions today to cope with soaring fuel prices, effective from mid-May to the end of June. Cathay will cancel about 2% of its passenger flights, mainly on short-haul routes and routes between Hong Kong and Australia, South Asia, and South Africa.
Cathay's reduction period is from May 16 to June 30, while Hong Kong Express's is from May 11 to June 30, with the reason being 'to alleviate some of the pressure from rising costs.' Cathay Pacific stated that over the past month, the company has done its best to adopt appropriate solutions, including adjusting fuel surcharges to cope with soaring fuel prices, but this was not enough to mitigate the impact, and cutting flights was a 'last resort.'
Hong Kong Express said it will cancel about 6% of its passenger flights and will arrange for transfers to other flights departing within 24 hours of the original flight time. All affected passengers will receive their new flight schedules by the 13th.
● Middle East conflict erupts while Russia-Ukraine war continues: Ukrainian agriculture faces new energy cost crisis
Mykola Maliienko, a 70-year-old farmer who cultivates the fertile black soil of central Ukraine and exports crops to Europe, said he planted 100 fewer hectares of corn this spring.
He needs to save money because the war in Iran has driven up fertilizer prices, and his biggest worry is whether he can afford the diesel needed to harvest his 1,200 hectares of farmland. Maliienko estimates his production costs will climb by at least 10% to 15%, and could soar by 60% unless the Middle East conflict is quickly resolved.
Fuel costs have nearly doubled since the US and Israeli attacks on Iran caused an unprecedented disruption in energy supplies. Despite being in a four-year war with Russia, Ukraine remains a significant producer of grains, oilseeds, and vegetable oils.
● Strait of Hormuz Blockade Devastates Shipping: Indian Coffee Could Lose 80% of West Asian Market
With the ongoing US-Iran war and the continued closure of the Strait of Hormuz, India's coffee industry may lose its main export market in the Middle East. As the world's seventh-largest coffee producer, India exports about 70% of its output and has expanded into markets including the United Arab Emirates, Kuwait, Jordan, and Saudi Arabia over the past decade.
Ramesh Rajah, president of the Indian Coffee Exporters' Association, said, 'Exporters could lose up to 80% of the West Asian market in the coming months,' stressing that this is because more Indian coffee needs to be transported through the Strait of Hormuz.
He stated, 'Shipments are being delayed, rerouted, or stranded at transshipment points, and soaring freight rates are squeezing profit margins,' noting that freight rates have 'nearly doubled' since the start of the US-Iran war, but it is difficult for Indian exporters to pass the increased costs on to buyers.
● LPG Price Hike Hits Philippine Street Food Vendors
Filipinos love a hot bowl of traditional beef stew, pares, but this expectation has become increasingly difficult to meet since the war in the Middle East broke out, causing liquefied petroleum gas (LPG) prices to soar.
Besides the impact of prices at the pump making headlines, the rise in LPG prices has also severely hit street food vendors in the Philippines. Eric Garcia, a 20-year-old vendor, said he was forced to raise the price of his traditional beef stew to 65 pesos (about $1.08) per bowl because fuel costs have reduced his daily income by a quarter. He noted that an 11-kilogram cylinder of gas, which used to last four days and cost 870 pesos, now costs 1600 pesos.
Ronilo Titom, who has been running a roadside food cart for two years, said, 'If we raise prices, customers will go to other stalls.' Although he insists on not raising prices, he has noticed his customer base slowly shrinking since the war began. (Editor: Hung Chi-yuan) 1150412
Hong Kong's Cathay Pacific and its subsidiary Hong Kong Express both announced flight reductions today to cope with soaring fuel prices, effective from mid-May to the end of June. Cathay will cancel about 2% of its passenger flights, mainly on short-haul routes and routes between Hong Kong and Australia, South Asia, and South Africa.
Cathay's reduction period is from May 16 to June 30, while Hong Kong Express's is from May 11 to June 30, with the reason being 'to alleviate some of the pressure from rising costs.' Cathay Pacific stated that over the past month, the company has done its best to adopt appropriate solutions, including adjusting fuel surcharges to cope with soaring fuel prices, but this was not enough to mitigate the impact, and cutting flights was a 'last resort.'
Hong Kong Express said it will cancel about 6% of its passenger flights and will arrange for transfers to other flights departing within 24 hours of the original flight time. All affected passengers will receive their new flight schedules by the 13th.
● Middle East conflict erupts while Russia-Ukraine war continues: Ukrainian agriculture faces new energy cost crisis
Mykola Maliienko, a 70-year-old farmer who cultivates the fertile black soil of central Ukraine and exports crops to Europe, said he planted 100 fewer hectares of corn this spring.
He needs to save money because the war in Iran has driven up fertilizer prices, and his biggest worry is whether he can afford the diesel needed to harvest his 1,200 hectares of farmland. Maliienko estimates his production costs will climb by at least 10% to 15%, and could soar by 60% unless the Middle East conflict is quickly resolved.
Fuel costs have nearly doubled since the US and Israeli attacks on Iran caused an unprecedented disruption in energy supplies. Despite being in a four-year war with Russia, Ukraine remains a significant producer of grains, oilseeds, and vegetable oils.
● Strait of Hormuz Blockade Devastates Shipping: Indian Coffee Could Lose 80% of West Asian Market
With the ongoing US-Iran war and the continued closure of the Strait of Hormuz, India's coffee industry may lose its main export market in the Middle East. As the world's seventh-largest coffee producer, India exports about 70% of its output and has expanded into markets including the United Arab Emirates, Kuwait, Jordan, and Saudi Arabia over the past decade.
Ramesh Rajah, president of the Indian Coffee Exporters' Association, said, 'Exporters could lose up to 80% of the West Asian market in the coming months,' stressing that this is because more Indian coffee needs to be transported through the Strait of Hormuz.
He stated, 'Shipments are being delayed, rerouted, or stranded at transshipment points, and soaring freight rates are squeezing profit margins,' noting that freight rates have 'nearly doubled' since the start of the US-Iran war, but it is difficult for Indian exporters to pass the increased costs on to buyers.
● LPG Price Hike Hits Philippine Street Food Vendors
Filipinos love a hot bowl of traditional beef stew, pares, but this expectation has become increasingly difficult to meet since the war in the Middle East broke out, causing liquefied petroleum gas (LPG) prices to soar.
Besides the impact of prices at the pump making headlines, the rise in LPG prices has also severely hit street food vendors in the Philippines. Eric Garcia, a 20-year-old vendor, said he was forced to raise the price of his traditional beef stew to 65 pesos (about $1.08) per bowl because fuel costs have reduced his daily income by a quarter. He noted that an 11-kilogram cylinder of gas, which used to last four days and cost 870 pesos, now costs 1600 pesos.
Ronilo Titom, who has been running a roadside food cart for two years, said, 'If we raise prices, customers will go to other stalls.' Although he insists on not raising prices, he has noticed his customer base slowly shrinking since the war began. (Editor: Hung Chi-yuan) 1150412