May 5: Impact of US-Iran War on International Economy, Financial Markets, and Livelihoods
The ongoing Middle East conflict is driving up fuel and air ticket prices, increasing pressure on the tourism industry. Simultaneously, a strong El Niño phenomenon is predicted to return by mid-year, threatening Asia with increased energy demand, reduced hydropower, and affected crop harvests.
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- 📰 Published: May 5, 2026 at 18:16
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Middle East War Key News
Central News Agency
(Taipei, May 5, comprehensive foreign news report) The ongoing Middle East conflict continues to push up fuel and air ticket prices, increasing pressure on the tourism industry. As the war continues, a strong El Niño phenomenon is expected to return by mid-year, impacting the Asian region, potentially increasing energy demand, weakening hydropower generation, and affecting crop harvests.
Below is the latest situation regarding the impact of the US-Iran war on the international economy, financial markets, and people's livelihoods:
Thailand Approves US$12.2 Billion in Borrowing
To alleviate the economic impact caused by the Middle East war, Thailand approved an emergency borrowing plan totaling US$12.2 billion today. This is one of Thailand's largest borrowings in decades.
The cabinet pointed out that the funds will be used to stimulate domestic consumption and alleviate economic difficulties amidst rising prices and slowing growth. The Ministry of Finance had already lowered its forecast for this year's annual GDP growth rate to 1.6% last week.
Energy Crisis Impacts Various Industries, Thai Taiwanese Businesses Face Increased Pressure
More than a hundred Taiwanese business owners gathered at a recent Taiwanese Business Association event in Bangkok. On stage, there was singing and dancing, and Taiwanese bosses who had been doing business in Thailand for decades chatted cheerfully. However, when the topic turned to the energy crisis triggered by the Middle East conflict, the atmosphere became heavy. Taiwanese business owners frankly stated that the simultaneous rise in energy and raw material costs has compressed profits, and almost no industry can escape unscathed.
Thai Taiwanese business owners observed that the impact of this energy crisis was first reflected in the petrochemical industry. Kuo Hsiu-min, a Taiwanese business owner specializing in producing high-quality PVC plastic products in Thailand, felt the impact most strongly. She pointed out that raw material prices have already increased by about 50%, and the increase was concentrated within a few weeks after the outbreak of the conflict.
Malaysia Tourism Industry Faces Increased Cost Pressure
The ongoing Middle East conflict continues to push up fuel prices, and Malaysia's tourism industry faces pressure. Industry insiders point out that diesel subsidies in Malaysia do not include the tourism industry, making tour bus operators, who rely on diesel, the first to bear the brunt. Cost control becomes difficult, potentially triggering a chain reaction in the tourism industry.
Tourism operator Steve Eng said that the most direct impact of rising fuel prices on operators is transportation costs. Tour itineraries often require advance quotations, and once provided to overseas partners, it is often too late to reflect changes in fuel prices. Operators find it difficult to pass on costs in a timely manner and can only absorb them themselves, leading to a significant increase in operational pressure.
More Expensive Air Tickets Affect Europeans' Willingness to Travel to Asia
The Middle East conflict has continued for over two months, with persistently high fuel prices and increased uncertainties. This not only puts pressure on airlines but also directly affects European travelers' arrangements for long-haul flights to Asia for tourism or business activities. First-line tourism operators are keenly feeling these changes.
Yang Cheng-hsun, founder of Kunji Travel in the Netherlands, which specializes in the Taiwan-Japan travel market, explained that long-haul flight ticket prices have risen by at least 30% since before the conflict, which in turn affects consumers' willingness to purchase tickets. In practical terms, about 80% to 90% of clients currently discussing ticket purchases are choosing to extend their consideration period.
He also mentioned that in the past, April and May were peak travel seasons, and Europeans often planned early, with many clients planning autumn trips during this period. However, industry insiders generally observe a significant decrease in the number of long-haul travel packages inquired about and booked in April and May this year.
Hormuz Blockade Doubles Oil Prices, Nordic Airlines Face Divergent Fates with Hedging Strategies
The US-Israeli coalition launched an attack on Iran on February 28, followed by Iran's blockade of the Strait of Hormuz, hindering European jet fuel imports. Oil prices surged from about US$90 per barrel at the beginning of the year to nearly US$190, more than doubling.
The oil crisis swept across Europe, leading to divergent fates for airlines. The International Energy Agency (IEA) recently warned that Europe could run out of jet fuel within six weeks. Lufthansa and Scandinavian Airlines have significantly cut flights; in contrast, low-cost carrier giant Ryanair and Finnair, which adopted hedging strategies in advance, have successfully weathered the initial impact.
'Super El Niño' May Return, Asia's Energy and Food Supply Under Pressure
The World Meteorological Organization (WMO) stated last week that the El Niño phenomenon could appear as early as May to July, and initial indications suggest that this El Niño event will be very strong. For Asia, this is not good news, as some Asian countries have often been affected by heatwaves, droughts, and heavy rainfall triggered by El Niño in the past.
High temperatures and dry conditions will further exacerbate agricultural risks, while agriculture itself is already under pressure from rising fertilizer and fuel costs due to the conflict. (Edited by Yang Chao-yen) 1150505
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Central News Agency
(Taipei, May 5, comprehensive foreign news report) The ongoing Middle East conflict continues to push up fuel and air ticket prices, increasing pressure on the tourism industry. As the war continues, a strong El Niño phenomenon is expected to return by mid-year, impacting the Asian region, potentially increasing energy demand, weakening hydropower generation, and affecting crop harvests.
Below is the latest situation regarding the impact of the US-Iran war on the international economy, financial markets, and people's livelihoods:
Thailand Approves US$12.2 Billion in Borrowing
To alleviate the economic impact caused by the Middle East war, Thailand approved an emergency borrowing plan totaling US$12.2 billion today. This is one of Thailand's largest borrowings in decades.
The cabinet pointed out that the funds will be used to stimulate domestic consumption and alleviate economic difficulties amidst rising prices and slowing growth. The Ministry of Finance had already lowered its forecast for this year's annual GDP growth rate to 1.6% last week.
Energy Crisis Impacts Various Industries, Thai Taiwanese Businesses Face Increased Pressure
More than a hundred Taiwanese business owners gathered at a recent Taiwanese Business Association event in Bangkok. On stage, there was singing and dancing, and Taiwanese bosses who had been doing business in Thailand for decades chatted cheerfully. However, when the topic turned to the energy crisis triggered by the Middle East conflict, the atmosphere became heavy. Taiwanese business owners frankly stated that the simultaneous rise in energy and raw material costs has compressed profits, and almost no industry can escape unscathed.
Thai Taiwanese business owners observed that the impact of this energy crisis was first reflected in the petrochemical industry. Kuo Hsiu-min, a Taiwanese business owner specializing in producing high-quality PVC plastic products in Thailand, felt the impact most strongly. She pointed out that raw material prices have already increased by about 50%, and the increase was concentrated within a few weeks after the outbreak of the conflict.
Malaysia Tourism Industry Faces Increased Cost Pressure
The ongoing Middle East conflict continues to push up fuel prices, and Malaysia's tourism industry faces pressure. Industry insiders point out that diesel subsidies in Malaysia do not include the tourism industry, making tour bus operators, who rely on diesel, the first to bear the brunt. Cost control becomes difficult, potentially triggering a chain reaction in the tourism industry.
Tourism operator Steve Eng said that the most direct impact of rising fuel prices on operators is transportation costs. Tour itineraries often require advance quotations, and once provided to overseas partners, it is often too late to reflect changes in fuel prices. Operators find it difficult to pass on costs in a timely manner and can only absorb them themselves, leading to a significant increase in operational pressure.
More Expensive Air Tickets Affect Europeans' Willingness to Travel to Asia
The Middle East conflict has continued for over two months, with persistently high fuel prices and increased uncertainties. This not only puts pressure on airlines but also directly affects European travelers' arrangements for long-haul flights to Asia for tourism or business activities. First-line tourism operators are keenly feeling these changes.
Yang Cheng-hsun, founder of Kunji Travel in the Netherlands, which specializes in the Taiwan-Japan travel market, explained that long-haul flight ticket prices have risen by at least 30% since before the conflict, which in turn affects consumers' willingness to purchase tickets. In practical terms, about 80% to 90% of clients currently discussing ticket purchases are choosing to extend their consideration period.
He also mentioned that in the past, April and May were peak travel seasons, and Europeans often planned early, with many clients planning autumn trips during this period. However, industry insiders generally observe a significant decrease in the number of long-haul travel packages inquired about and booked in April and May this year.
Hormuz Blockade Doubles Oil Prices, Nordic Airlines Face Divergent Fates with Hedging Strategies
The US-Israeli coalition launched an attack on Iran on February 28, followed by Iran's blockade of the Strait of Hormuz, hindering European jet fuel imports. Oil prices surged from about US$90 per barrel at the beginning of the year to nearly US$190, more than doubling.
The oil crisis swept across Europe, leading to divergent fates for airlines. The International Energy Agency (IEA) recently warned that Europe could run out of jet fuel within six weeks. Lufthansa and Scandinavian Airlines have significantly cut flights; in contrast, low-cost carrier giant Ryanair and Finnair, which adopted hedging strategies in advance, have successfully weathered the initial impact.
'Super El Niño' May Return, Asia's Energy and Food Supply Under Pressure
The World Meteorological Organization (WMO) stated last week that the El Niño phenomenon could appear as early as May to July, and initial indications suggest that this El Niño event will be very strong. For Asia, this is not good news, as some Asian countries have often been affected by heatwaves, droughts, and heavy rainfall triggered by El Niño in the past.
High temperatures and dry conditions will further exacerbate agricultural risks, while agriculture itself is already under pressure from rising fertilizer and fuel costs due to the conflict. (Edited by Yang Chao-yen) 1150505
Choose to stand with the facts, your every sponsorship is the power to protect press freedom.
Download CNA's 'First-hand News' APP to stay updated with the latest news.
Without authorization, the text, images, and audio-visual content of this website may not be reproduced, publicly broadcast, or publicly transmitted and utilized.