May 3: Impact of U.S.-Iran War on Global Economy, Financial Markets, and Daily Life
The U.S.-Iran conflict is severely impacting the global economy. UNHCR reports skyrocketing aid delivery costs, while Singapore warns of an economic slowdown and potential recession due to the closure of the Strait of Hormuz. Japan has released a second round of national oil reserves and strengthened cooperation with Vietnam on critical minerals to ensure resource stability.
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- 📰 Published: May 3, 2026 at 16:52
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Major News on the U.S.-Iran War – Central News Agency (Taipei, May 3) – The United Nations High Commissioner for Refugees (UNHCR) stated that the war in the Middle East has triggered a surge in shipping costs, affecting the delivery of aid to refugees in other parts of the region and Africa. Meanwhile, the Japanese government recently announced the release of its second round of national oil reserves to stabilize the oil supply.
● Surging Shipping Costs Impact UNHCR Humanitarian Aid
UNHCR reported that the Middle East conflict has caused freight rates to skyrocket, hindering the delivery of relief supplies to refugees in Africa and other areas. Costs for goods coming from major suppliers like India, Pakistan, and China have surged by nearly 18%.
UNHCR spokesperson Carlotta Wolf noted that some shipping costs have more than doubled. For instance, the cost of transporting over 2,000 metric tons of relief supplies from the global stockpile in Dubai to stations in Sudan and Chad rose from $927,000 before the crisis to $1.87 million.
● Japan and Vietnam Leaders Agree on Critical Minerals Cooperation Amid Middle East Tensions
Japanese Prime Minister Sanae Takaichi recently held a 50-minute meeting in Hanoi with Vietnamese Prime Minister Lê Minh Hưng. Both sides agreed to cooperate on securing crude oil, rare earths, and other critical minerals in response to the situation in the Middle East.
They also reached a consensus on supporting Vietnam''s Nghi Son Refinery through Nippon Export and Investment Insurance (NEXI). Takaichi expressed hope that bilateral cooperation would make the region stronger and more prosperous to realize a Free and Open Indo-Pacific. Lê Minh Hưng emphasized that Vietnam regards Japan as a top-tier strategic partner and a reliable friend.
● Lawrence Wong: Singapore''s Economy to Slow Down Due to Continued Closure of the Strait of Hormuz
Singapore Prime Minister Lawrence Wong stated in his May Day speech that Singapore''s economic growth will slow this year as the Strait of Hormuz remains closed due to the Middle East crisis. He warned that some countries might fall into recession and that supply chain disruptions are likely to worsen in the coming months.
Wong said, ''In Asia, we are particularly hard-hit because of our high reliance on energy and other critical supplies from the Persian Gulf. Global inflation will rise, spreading from energy to food and other essentials. Some economies are likely to enter a recession, and Singapore will be directly affected. Our growth will slow, and inflation will intensify, bringing real pressure to businesses, workers, and families.''
● Japan Releases Second Round of National Oil Reserves Amid Tensions
Due to concerns over oil supply stability following the worsening situation in the Middle East, the Agency for Natural Resources and Energy announced the release of 5.8 million kiloliters of national oil reserves, equivalent to 20 days of domestic consumption.
The agency pointed out that the release began at the Kashima oil storage facility in Ibaraki Prefecture on the 1st, followed by the Shibushi national petroleum reserve base in Kagoshima Prefecture on the 2nd.
These reserves will be sold to four major Japanese oil companies—ENEOS, Idemitsu Kosan, Cosmo Oil, and Taiyo Oil—for a total of approximately 540 billion yen (about NT$110 billion).
● Surging Shipping Costs Impact UNHCR Humanitarian Aid
UNHCR reported that the Middle East conflict has caused freight rates to skyrocket, hindering the delivery of relief supplies to refugees in Africa and other areas. Costs for goods coming from major suppliers like India, Pakistan, and China have surged by nearly 18%.
UNHCR spokesperson Carlotta Wolf noted that some shipping costs have more than doubled. For instance, the cost of transporting over 2,000 metric tons of relief supplies from the global stockpile in Dubai to stations in Sudan and Chad rose from $927,000 before the crisis to $1.87 million.
● Japan and Vietnam Leaders Agree on Critical Minerals Cooperation Amid Middle East Tensions
Japanese Prime Minister Sanae Takaichi recently held a 50-minute meeting in Hanoi with Vietnamese Prime Minister Lê Minh Hưng. Both sides agreed to cooperate on securing crude oil, rare earths, and other critical minerals in response to the situation in the Middle East.
They also reached a consensus on supporting Vietnam''s Nghi Son Refinery through Nippon Export and Investment Insurance (NEXI). Takaichi expressed hope that bilateral cooperation would make the region stronger and more prosperous to realize a Free and Open Indo-Pacific. Lê Minh Hưng emphasized that Vietnam regards Japan as a top-tier strategic partner and a reliable friend.
● Lawrence Wong: Singapore''s Economy to Slow Down Due to Continued Closure of the Strait of Hormuz
Singapore Prime Minister Lawrence Wong stated in his May Day speech that Singapore''s economic growth will slow this year as the Strait of Hormuz remains closed due to the Middle East crisis. He warned that some countries might fall into recession and that supply chain disruptions are likely to worsen in the coming months.
Wong said, ''In Asia, we are particularly hard-hit because of our high reliance on energy and other critical supplies from the Persian Gulf. Global inflation will rise, spreading from energy to food and other essentials. Some economies are likely to enter a recession, and Singapore will be directly affected. Our growth will slow, and inflation will intensify, bringing real pressure to businesses, workers, and families.''
● Japan Releases Second Round of National Oil Reserves Amid Tensions
Due to concerns over oil supply stability following the worsening situation in the Middle East, the Agency for Natural Resources and Energy announced the release of 5.8 million kiloliters of national oil reserves, equivalent to 20 days of domestic consumption.
The agency pointed out that the release began at the Kashima oil storage facility in Ibaraki Prefecture on the 1st, followed by the Shibushi national petroleum reserve base in Kagoshima Prefecture on the 2nd.
These reserves will be sold to four major Japanese oil companies—ENEOS, Idemitsu Kosan, Cosmo Oil, and Taiyo Oil—for a total of approximately 540 billion yen (about NT$110 billion).