April 12: Impact of US-Iran War on International Economy, Financial Markets, and Livelihoods
The US-Iran war is severely impacting the global economy. Cathay Pacific and HK Express announced flight reductions from mid-May to late June due to soaring fuel prices. Ukrainian farmers face rising production costs due to increased fertilizer prices and diesel shortages. India's coffee exports could lose up to 80% of the West Asian market due to the Strait of Hormuz blockade, with freight costs nearly doubling. In the Philippines, surging LPG prices are squeezing the profits of street food vendors.
📋 Article Processing Timeline
- 📰 Published: April 12, 2026 at 16:28
- 🔍 Collected: April 12, 2026 at 17:00 (32 min after Published)
- 🤖 AI Analyzed: April 15, 2026 at 22:12 (77h 12m after Collected)
●War impacts oil prices; Cathay Pacific and HK Express reduce flights from mid-May to end of June
Hong Kong's Cathay Pacific Airways and its subsidiary HK Express today simultaneously announced flight reductions in response to soaring fuel prices, from mid-May to the end of June. Cathay will cancel about 2% of its passenger flights, mainly short-haul routes and routes between Hong Kong and Australia, South Asia, and South Africa.
Cathay's flight reduction period is from May 16 to June 30, and HK Express's flight reduction period is from May 11 to June 30, citing "alleviating some of the pressure from rising costs." Cathay Pacific stated that over the past month, the company has tried its best to adopt appropriate solutions, including adjusting fuel surcharges to cope with soaring fuel prices, but it is still not enough to alleviate the impact, and cutting flights is a "last resort."
HK Express stated that it will cancel about 6% of its total passenger flights and will arrange transfers to other flights departing within 24 hours of the original flight time. All affected passengers will receive new flight time arrangements by the 13th or earlier.
●Russia-Ukraine war not yet settled, Middle East conflict flares up again; Ukrainian agriculture again faces energy cost crisis
Mykola Maliienko, a 70-year-old farmer who cultivates fertile black soil in central Ukraine and exports crops to Europe, said that 100 hectares less corn will be sown this spring.
He needs to save money because the Iran war has driven up fertilizer prices, and his biggest concern is whether he can buy the diesel needed to harvest 1,200 hectares of farmland. Maliienko estimates that his production costs will climb by at least 10% to 15%, and unless the Middle East conflict is resolved quickly, costs could soar by 60%.
Fuel costs have almost doubled since the US and Israel attacked Iran, leading to an unprecedented disruption in energy supply. Despite being in a four-year war with Russia, Ukraine remains an important producer of grains, oilseeds, and vegetable oils.
●Strait of Hormuz blockade severely impacts shipping; Indian coffee may lose 80% of West Asian market
With the US-Iran war unresolved and the Strait of Hormuz remaining closed, the Indian coffee industry may lose its main export markets in the Middle East. India, the world's seventh-largest coffee producer, exports about 70% of its output and has expanded to markets including the United Arab Emirates, Kuwait, Jordan, and Saudi Arabia over the past decade.
Ramesh Rajah, chairman of the Indian Coffee Exporters Association, said: "Exporters may lose up to 80% of the West Asian market in the coming months," emphasizing that this is because more Indian coffee needs to be transported through the Strait of Hormuz.
He said: "Shipments are being delayed, rerouted, or stranded at transshipment points, and soaring freight rates are squeezing profit margins," noting that freight rates have almost "doubled" since the US-Iran war began, but Indian exporters find it difficult to pass on the rising costs to buyers.
Filipinos love the hot traditional beef stew pares, but since the outbreak of the Middle East war, the soaring price of liquefied petroleum gas (LPG) has made this expectation increasingly difficult.
In addition to the impact of gas station prices becoming the biggest news, the rise in LPG prices has also severely hit Filipino street food vendors. Eric Garcia, a 20-year-old vendor, said he was forced to raise the price of traditional beef stew to 65 pesos (about 1.08 US dollars) per bowl because fuel costs have reduced his daily income by a quarter. He pointed out that an 11-kilogram gas cylinder usually lasts for four days, previously sold for 870 pesos, but now costs 1,600 pesos.
Ronilo Titom, a street food truck owner for two years, said: "If we raise prices, customers will go to other stalls." Although he insists on not raising prices, he has noticed that his customer base has slowly shrunk since the war began. (Editor: Hong Qi-yuan) 1150412
Hong Kong's Cathay Pacific Airways and its subsidiary HK Express today simultaneously announced flight reductions in response to soaring fuel prices, from mid-May to the end of June. Cathay will cancel about 2% of its passenger flights, mainly short-haul routes and routes between Hong Kong and Australia, South Asia, and South Africa.
Cathay's flight reduction period is from May 16 to June 30, and HK Express's flight reduction period is from May 11 to June 30, citing "alleviating some of the pressure from rising costs." Cathay Pacific stated that over the past month, the company has tried its best to adopt appropriate solutions, including adjusting fuel surcharges to cope with soaring fuel prices, but it is still not enough to alleviate the impact, and cutting flights is a "last resort."
HK Express stated that it will cancel about 6% of its total passenger flights and will arrange transfers to other flights departing within 24 hours of the original flight time. All affected passengers will receive new flight time arrangements by the 13th or earlier.
●Russia-Ukraine war not yet settled, Middle East conflict flares up again; Ukrainian agriculture again faces energy cost crisis
Mykola Maliienko, a 70-year-old farmer who cultivates fertile black soil in central Ukraine and exports crops to Europe, said that 100 hectares less corn will be sown this spring.
He needs to save money because the Iran war has driven up fertilizer prices, and his biggest concern is whether he can buy the diesel needed to harvest 1,200 hectares of farmland. Maliienko estimates that his production costs will climb by at least 10% to 15%, and unless the Middle East conflict is resolved quickly, costs could soar by 60%.
Fuel costs have almost doubled since the US and Israel attacked Iran, leading to an unprecedented disruption in energy supply. Despite being in a four-year war with Russia, Ukraine remains an important producer of grains, oilseeds, and vegetable oils.
●Strait of Hormuz blockade severely impacts shipping; Indian coffee may lose 80% of West Asian market
With the US-Iran war unresolved and the Strait of Hormuz remaining closed, the Indian coffee industry may lose its main export markets in the Middle East. India, the world's seventh-largest coffee producer, exports about 70% of its output and has expanded to markets including the United Arab Emirates, Kuwait, Jordan, and Saudi Arabia over the past decade.
Ramesh Rajah, chairman of the Indian Coffee Exporters Association, said: "Exporters may lose up to 80% of the West Asian market in the coming months," emphasizing that this is because more Indian coffee needs to be transported through the Strait of Hormuz.
He said: "Shipments are being delayed, rerouted, or stranded at transshipment points, and soaring freight rates are squeezing profit margins," noting that freight rates have almost "doubled" since the US-Iran war began, but Indian exporters find it difficult to pass on the rising costs to buyers.
Filipinos love the hot traditional beef stew pares, but since the outbreak of the Middle East war, the soaring price of liquefied petroleum gas (LPG) has made this expectation increasingly difficult.
In addition to the impact of gas station prices becoming the biggest news, the rise in LPG prices has also severely hit Filipino street food vendors. Eric Garcia, a 20-year-old vendor, said he was forced to raise the price of traditional beef stew to 65 pesos (about 1.08 US dollars) per bowl because fuel costs have reduced his daily income by a quarter. He pointed out that an 11-kilogram gas cylinder usually lasts for four days, previously sold for 870 pesos, but now costs 1,600 pesos.
Ronilo Titom, a street food truck owner for two years, said: "If we raise prices, customers will go to other stalls." Although he insists on not raising prices, he has noticed that his customer base has slowly shrunk since the war began. (Editor: Hong Qi-yuan) 1150412
FAQ
How has the US-Iran war affected the aviation industry?
Due to soaring fuel prices, Hong Kong's Cathay Pacific and HK Express announced flight reductions from mid-May to late June.
What impact has the Strait of Hormuz blockade had on India's coffee exports?
The Strait of Hormuz blockade could lead to India's coffee exports losing up to 80% of the West Asian market, with freight costs nearly doubling.