Impact of the US-Iran War on the International Economy, Financial Markets, and Daily Life
The Middle East conflict has triggered global economic risks, with the Strait of Hormuz paralyzed and energy prices soaring. Nations like Singapore, Canada, and the UK are scrambling to implement emergency relief and energy security measures.
📋 Article Processing Timeline
- 📰 Published: April 21, 2026 at 18:16
- 🔍 Collected: April 21, 2026 at 18:31 (15 min after Published)
- 🤖 AI Analyzed: April 28, 2026 at 22:30 (171h 58m after Collected)
The conflict in the Middle East has brought risks of an economic downturn, which may hit labor markets through spillover effects. Layoff pressures on some companies in Singapore have already increased. Canada's economy is also under pressure, with the March CPI rising 2.4% year-on-year and gasoline prices surging 5.9%.
Here is the latest on the impact of the US-Iran war on the international economy, financial markets, and daily life:
**Strait of Hormuz Paralyzed: Only 4 Ships Pass**
Tracking data shows that as Iran and the United States implemented their respective blockades, traffic in the Strait of Hormuz ground to a halt again on the 20th. Iranian vessels continue to test the U.S. blockade. Kpler, a shipping tracking agency, stated that only 4 ships have passed through the strait in both directions since the 19th.
**Layoff Pressure Rises in Singapore**
The Middle East situation has pushed up energy prices, triggering a chain reaction. Many companies in Singapore pointed out that labor cost pressure has become a focal point. While the overall scale of layoffs in Singapore changed little in the first quarter of this year, layoff pressures still exist in some industries due to the dual impact of geopolitical tension and rising costs. Prime Minister Lawrence Wong promised that the government would help Singaporeans through these difficult times. The authorities announced a relief package of nearly S$1 billion (about NT$24.7 billion), including the early distribution of S$500 CDC vouchers originally scheduled for January 2027.
**Rising Cost of Living in Bangkok: Tuk-Tuk Drivers Struggle**
In Thailand, the rising cost of living is most felt by Tuk-Tuk drivers and fruit vendors who rely on tourists. They say people are increasingly unwilling to spend, with some describing current days as harder than during the pandemic. A 73-year-old driver said he used to earn 1,000-2,000 baht a day, but now only earns 100-200 baht.
**Qatar Gradually Resumes Foreign Airline Operations**
For the first time since the war broke out, the Qatar Civil Aviation Authority will allow foreign airline flights to land at Qatar's main airport, Hamad International Airport, in a gradual resumption of operations.
**Netherlands to Allocate Over 35 Billion to Mitigate Fuel Price Burdens**
The Dutch government announced it would release over 950 million euros (about NT$35.2 billion) to help compensate individuals and businesses for soaring gasoline prices. The first batch of measures, worth 627 million euros, will prioritize households and businesses.
**UK Accelerates Clean Energy Push**
As the war pushes up oil and gas prices, the UK government announced it would accelerate its clean energy plans. Solar panels and wind turbines in industrial areas and on railway land could power about 5 million homes. The government also proposed reforms to speed up the development of domestic clean energy.
**France Estimates Economic Losses Over 200 Billion**
French Finance Minister Roland Lescure estimated the economic loss to France from the Middle East war at 4 to 6 billion euros (about NT$148-222 billion). Prime Minister Sebastien Lecornu also mentioned in a letter to department heads that the war has caused at least 6 billion euros in losses to France.
**Canada's March Inflation Jumps to 2.4%**
Statistics Canada data showed the March CPI rose 2.4% year-on-year. Gasoline prices rose 5.9% year-on-year; compared with the previous month, the increase was as high as 21.2%, the largest monthly increase ever recorded due to supply shocks caused by the war.
Here is the latest on the impact of the US-Iran war on the international economy, financial markets, and daily life:
**Strait of Hormuz Paralyzed: Only 4 Ships Pass**
Tracking data shows that as Iran and the United States implemented their respective blockades, traffic in the Strait of Hormuz ground to a halt again on the 20th. Iranian vessels continue to test the U.S. blockade. Kpler, a shipping tracking agency, stated that only 4 ships have passed through the strait in both directions since the 19th.
**Layoff Pressure Rises in Singapore**
The Middle East situation has pushed up energy prices, triggering a chain reaction. Many companies in Singapore pointed out that labor cost pressure has become a focal point. While the overall scale of layoffs in Singapore changed little in the first quarter of this year, layoff pressures still exist in some industries due to the dual impact of geopolitical tension and rising costs. Prime Minister Lawrence Wong promised that the government would help Singaporeans through these difficult times. The authorities announced a relief package of nearly S$1 billion (about NT$24.7 billion), including the early distribution of S$500 CDC vouchers originally scheduled for January 2027.
**Rising Cost of Living in Bangkok: Tuk-Tuk Drivers Struggle**
In Thailand, the rising cost of living is most felt by Tuk-Tuk drivers and fruit vendors who rely on tourists. They say people are increasingly unwilling to spend, with some describing current days as harder than during the pandemic. A 73-year-old driver said he used to earn 1,000-2,000 baht a day, but now only earns 100-200 baht.
**Qatar Gradually Resumes Foreign Airline Operations**
For the first time since the war broke out, the Qatar Civil Aviation Authority will allow foreign airline flights to land at Qatar's main airport, Hamad International Airport, in a gradual resumption of operations.
**Netherlands to Allocate Over 35 Billion to Mitigate Fuel Price Burdens**
The Dutch government announced it would release over 950 million euros (about NT$35.2 billion) to help compensate individuals and businesses for soaring gasoline prices. The first batch of measures, worth 627 million euros, will prioritize households and businesses.
**UK Accelerates Clean Energy Push**
As the war pushes up oil and gas prices, the UK government announced it would accelerate its clean energy plans. Solar panels and wind turbines in industrial areas and on railway land could power about 5 million homes. The government also proposed reforms to speed up the development of domestic clean energy.
**France Estimates Economic Losses Over 200 Billion**
French Finance Minister Roland Lescure estimated the economic loss to France from the Middle East war at 4 to 6 billion euros (about NT$148-222 billion). Prime Minister Sebastien Lecornu also mentioned in a letter to department heads that the war has caused at least 6 billion euros in losses to France.
**Canada's March Inflation Jumps to 2.4%**
Statistics Canada data showed the March CPI rose 2.4% year-on-year. Gasoline prices rose 5.9% year-on-year; compared with the previous month, the increase was as high as 21.2%, the largest monthly increase ever recorded due to supply shocks caused by the war.