April 13: Impact of US-Iran Conflict on International Economy, Financial Markets, and Livelihoods
On April 13, 2026, reports detailed the widespread economic repercussions of the US-Iran conflict. The European International Airports Council warned of a potential systemic aviation fuel shortage in Europe within three weeks if transit through the Strait of Hormuz is not fully restored, threatening air travel and the tourism sector. In response to surging fuel prices, the Irish government implemented a 10 euro cent per liter tax cut on gasoline and diesel and postponed a carbon tax hike. Across Southeast Asia, citizens are facing increased transportation and food costs. Grab in Singapore raised fuel surcharges, ferries to Batam added surcharges, and Vietnam Railways increased fares. Diesel prices surged significantly in Thailand (67%), Philippines (140%), Vietnam (110%), Malaysia (100%), and Singapore (67%), while Indonesia maintained stable prices due to subsidies. Food prices in Thailand also rose, with pork up 8%, chicken 3%, eggs 9%, and palm oil 8%.
📋 Article Processing Timeline
- 📰 Published: April 13, 2026 at 17:41
- 🔍 Collected: April 13, 2026 at 18:01 (20 min after Published)
- 🤖 AI Analyzed: April 13, 2026 at 18:36 (34 min after Collected)
The European International Airports Council (ACI Europe), representing over 95% of European commercial air traffic, warned the EU Commission's Commissioner for Transport, Apostolos Tzitzikostas, about a potential systemic aviation fuel shortage. This shortage is projected to occur within three weeks if transit through the Strait of Hormuz is not significantly and stably restored. The warning highlighted the impact of military activities on supply and demand, coupled with declining fuel reserves, and the critical role of air travel for the upcoming summer tourism season in many EU economies.
Following protests by Irish freight operators and agricultural contractors regarding oil price surges caused by the Middle East conflict, the Irish government announced fuel tax cuts. Finance Minister Simon Harris confirmed a 10 euro cent per liter reduction for both diesel and gasoline. Additionally, a planned carbon tax increase originally set for May was postponed to the October budget.
The Middle East conflict has led to increased food and transportation costs in Southeast Asia.
Transportation: Grab in Singapore increased its fuel surcharge from S$0.50 to S$0.90 per trip until the end of May, with consideration for similar surcharges in Thailand. Ferries operating between Singapore and Batam, Indonesia, introduced a S$6 fuel surcharge. Vietnam Railways raised passenger fares by 3% on April 5, contributing to a total 10% increase since before the US-Iran conflict, including a previous March hike.
Fuel Prices: Diesel prices saw substantial increases: Thailand (67% to 50 Thai Baht/liter by April 8, a reported historic high), Philippines (~140%), Vietnam (~110%), Malaysia (~100%), and Singapore (~67%). Indonesia's fuel prices remained stable due to government subsidies.
Food Prices (Thailand): Data from Thailand's Department of Internal Trade indicated price increases over the past week: pork rose 8% to an average of 165 Thai Baht per kilogram compared to pre-conflict levels. Chicken prices increased by 3%, eggs by 9%, and palm oil by 8%, attributed to rising demand for crude oil alternatives.
Following protests by Irish freight operators and agricultural contractors regarding oil price surges caused by the Middle East conflict, the Irish government announced fuel tax cuts. Finance Minister Simon Harris confirmed a 10 euro cent per liter reduction for both diesel and gasoline. Additionally, a planned carbon tax increase originally set for May was postponed to the October budget.
The Middle East conflict has led to increased food and transportation costs in Southeast Asia.
Transportation: Grab in Singapore increased its fuel surcharge from S$0.50 to S$0.90 per trip until the end of May, with consideration for similar surcharges in Thailand. Ferries operating between Singapore and Batam, Indonesia, introduced a S$6 fuel surcharge. Vietnam Railways raised passenger fares by 3% on April 5, contributing to a total 10% increase since before the US-Iran conflict, including a previous March hike.
Fuel Prices: Diesel prices saw substantial increases: Thailand (67% to 50 Thai Baht/liter by April 8, a reported historic high), Philippines (~140%), Vietnam (~110%), Malaysia (~100%), and Singapore (~67%). Indonesia's fuel prices remained stable due to government subsidies.
Food Prices (Thailand): Data from Thailand's Department of Internal Trade indicated price increases over the past week: pork rose 8% to an average of 165 Thai Baht per kilogram compared to pre-conflict levels. Chicken prices increased by 3%, eggs by 9%, and palm oil by 8%, attributed to rising demand for crude oil alternatives.