April 24: Impact of Middle East War on International Economy, Financial Markets, and Livelihoods
The ongoing Middle East conflict is having widespread repercussions on the global economy, accelerating inflation in Japan, causing commercial activity contraction in the Eurozone, and potentially increasing the UK government's borrowing costs. The instability also affects oil prices and shifts global trade patterns, as seen with Iran collecting tolls in the Strait of Hormuz and India's increased cotton yarn exports to China.
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- 📰 Published: April 24, 2026 at 17:21
- 🔍 Collected: April 24, 2026 at 17:32 (10 min after Published)
- 🤖 AI Analyzed: April 24, 2026 at 21:23 (3h 51m after Collected)
Middle East War Key News
Central News Agency
(Central News Agency, Taipei, April 24, comprehensive foreign news report) The ongoing Middle East conflict has pushed up inflation in Japan, led to a contraction in commercial activity in the Eurozone, and may increase the British government's borrowing costs; meanwhile, Iran announced it has received its first transit fees levied in the Strait of Hormuz.
● Japan's core inflation rises 1.8% in March; energy prices fall due to subsidies
Data released by the Japanese government on April 24 showed that core inflation accelerated to 1.8% in March, mainly driven by rising food prices.
Japan's inflation rate had already fallen to its lowest point since 2022 in February, but after the outbreak of the Iran war, the Bank of Japan warned last month that due to the impact of the Middle East conflict, "recent crude oil price increases" are expected to further push up Japan's inflation.
● Iran state media reports air defense system activated in capital; US crude oil futures surge
Iranian state media reported that air defense systems were activated in some areas of the capital Tehran on the evening of April 23, following reports of enemy aerial activity. This was the first such report since the ceasefire between the US and Iran began, and US crude oil futures surged in response.
Official Iranian News Agency (IRNA) stated that "the sound of air defense system firing" was heard in western Tehran. US crude oil futures immediately reacted, with prices surging by more than 5 dollars per barrel.
● Iranian official: First batch of Strait of Hormuz transit fees deposited
A senior Iranian parliamentary official stated on April 23 that Tehran has received the first batch of revenue from transit fees levied in the strategic Strait of Hormuz during the war with the United States and Israel.
According to Tasnim News Agency, Hamidreza Hajibabaei, Deputy Speaker of the Iranian Parliament, said: "The first batch of transit fees collected from the Strait of Hormuz has been deposited into the central bank account." Other Iranian media also reposted this statement but did not provide further details.
● Middle East conflict drags down Eurozone PMI below boom-bust line
A closely watched survey shows that the Middle East war, which pushed up energy prices and disrupted global supply chains, led to the first contraction in Eurozone business activity in 16 months.
AFP reported that S&P Global, a financial data provider, announced that the preliminary Eurozone Purchasing Managers' Index (PMI) for April was 48.6, down from 50.7 in March.
● UK successfully reduces deficit; experts warn Middle East war may increase borrowing costs
Official UK data shows that the government has reduced its deficit in the past 12 months ending March, but analysts warn that the Middle East war may increase government borrowing costs.
Tom Davies, a senior statistician at ONS, stated that as rising government tax revenues offset increased spending, "borrowing decreased by approximately 20 billion pounds (about NT$852.2 billion) compared to the previous fiscal year."
However, Danni Hewson, head of financial analysis at investment company AJ Bell, pointed out that "the Iran war has significantly disrupted original plans, not only increasing government borrowing costs but also triggering a resurgence of inflation."
● Mexico to export 1 million barrels of crude oil to Japan
Mexican President Claudia Sheinbaum announced at a press conference on April 23 that Mexico will export 1 million barrels of crude oil to Japan, but she did not disclose the specific timing of the export; due to the situation in the Middle East, the supply of some products made from naphtha is tight in Japan.
"Yomiuri Shimbun" reported that Sheinbaum noted that Pemex (Mexican oil company) had previously received a request from Japan, and she agreed to it during a phone call with Japanese Prime Minister Sanae Takaichi on April 20.
● Middle East war impacts Thai economy; experts urge clear policies to boost investment confidence
The Middle East conflict has impacted Thailand's economy, which is highly dependent on energy imports. Thailand's economic growth rate for this year has been revised down to 1.5%.
Experts point out that rising energy prices are pushing up inflation and economic uncertainty through a "domino effect." If government policies are not clear enough, it may further weaken foreign investment confidence and slow down the momentum of economic recovery.
● Iran war disrupts trade; India's cotton yarn exports to China surge against trend
The Middle East war has caused supply chain and fuel disruptions, severely affecting many factories in India. However, cotton yarn producers like Fiotex Cotspin have increased production due to unprecedented demand from Chinese customers. Cotton yarn shipments from West India's Gujarat to China have quadrupled.
Indian traders say that the Middle East war has disrupted trade routes, and reduced cotton supplies to China from other countries have made India a favored and nearby sourcing location. (Editor: Hong Pei-ying) 1150424
Central News Agency
(Central News Agency, Taipei, April 24, comprehensive foreign news report) The ongoing Middle East conflict has pushed up inflation in Japan, led to a contraction in commercial activity in the Eurozone, and may increase the British government's borrowing costs; meanwhile, Iran announced it has received its first transit fees levied in the Strait of Hormuz.
● Japan's core inflation rises 1.8% in March; energy prices fall due to subsidies
Data released by the Japanese government on April 24 showed that core inflation accelerated to 1.8% in March, mainly driven by rising food prices.
Japan's inflation rate had already fallen to its lowest point since 2022 in February, but after the outbreak of the Iran war, the Bank of Japan warned last month that due to the impact of the Middle East conflict, "recent crude oil price increases" are expected to further push up Japan's inflation.
● Iran state media reports air defense system activated in capital; US crude oil futures surge
Iranian state media reported that air defense systems were activated in some areas of the capital Tehran on the evening of April 23, following reports of enemy aerial activity. This was the first such report since the ceasefire between the US and Iran began, and US crude oil futures surged in response.
Official Iranian News Agency (IRNA) stated that "the sound of air defense system firing" was heard in western Tehran. US crude oil futures immediately reacted, with prices surging by more than 5 dollars per barrel.
● Iranian official: First batch of Strait of Hormuz transit fees deposited
A senior Iranian parliamentary official stated on April 23 that Tehran has received the first batch of revenue from transit fees levied in the strategic Strait of Hormuz during the war with the United States and Israel.
According to Tasnim News Agency, Hamidreza Hajibabaei, Deputy Speaker of the Iranian Parliament, said: "The first batch of transit fees collected from the Strait of Hormuz has been deposited into the central bank account." Other Iranian media also reposted this statement but did not provide further details.
● Middle East conflict drags down Eurozone PMI below boom-bust line
A closely watched survey shows that the Middle East war, which pushed up energy prices and disrupted global supply chains, led to the first contraction in Eurozone business activity in 16 months.
AFP reported that S&P Global, a financial data provider, announced that the preliminary Eurozone Purchasing Managers' Index (PMI) for April was 48.6, down from 50.7 in March.
● UK successfully reduces deficit; experts warn Middle East war may increase borrowing costs
Official UK data shows that the government has reduced its deficit in the past 12 months ending March, but analysts warn that the Middle East war may increase government borrowing costs.
Tom Davies, a senior statistician at ONS, stated that as rising government tax revenues offset increased spending, "borrowing decreased by approximately 20 billion pounds (about NT$852.2 billion) compared to the previous fiscal year."
However, Danni Hewson, head of financial analysis at investment company AJ Bell, pointed out that "the Iran war has significantly disrupted original plans, not only increasing government borrowing costs but also triggering a resurgence of inflation."
● Mexico to export 1 million barrels of crude oil to Japan
Mexican President Claudia Sheinbaum announced at a press conference on April 23 that Mexico will export 1 million barrels of crude oil to Japan, but she did not disclose the specific timing of the export; due to the situation in the Middle East, the supply of some products made from naphtha is tight in Japan.
"Yomiuri Shimbun" reported that Sheinbaum noted that Pemex (Mexican oil company) had previously received a request from Japan, and she agreed to it during a phone call with Japanese Prime Minister Sanae Takaichi on April 20.
● Middle East war impacts Thai economy; experts urge clear policies to boost investment confidence
The Middle East conflict has impacted Thailand's economy, which is highly dependent on energy imports. Thailand's economic growth rate for this year has been revised down to 1.5%.
Experts point out that rising energy prices are pushing up inflation and economic uncertainty through a "domino effect." If government policies are not clear enough, it may further weaken foreign investment confidence and slow down the momentum of economic recovery.
● Iran war disrupts trade; India's cotton yarn exports to China surge against trend
The Middle East war has caused supply chain and fuel disruptions, severely affecting many factories in India. However, cotton yarn producers like Fiotex Cotspin have increased production due to unprecedented demand from Chinese customers. Cotton yarn shipments from West India's Gujarat to China have quadrupled.
Indian traders say that the Middle East war has disrupted trade routes, and reduced cotton supplies to China from other countries have made India a favored and nearby sourcing location. (Editor: Hong Pei-ying) 1150424