Oil prices climb past US$110 as Iran war standoff shows no signs of ending

Brent crude is trading above $110 per barrel, reflecting ongoing concerns about supply disruptions from the Iran-US conflict and the blockade of the Strait of Hormuz. Southeast Asian airlines are cutting flights in response to soaring fuel costs, signaling broader economic stress.

Importer economies across Singapore, the Philippines, Vietnam, and Thailand face direct pressure from elevated oil prices. Most central banks are keeping rates elevated to combat inflation, but rising energy costs continue to push consumer price indices higher. Transportation, electricity, and heating costs are all climbing rapidly.

Businesses across the region, especially small and medium enterprises, struggle to absorb higher energy outlays. Some are passing increased costs to consumers, while others are seeing margin compression. The prolonged standoff between the US and Iran suggests no relief is imminent, keeping regional economic growth forecasts under pressure.