The World Bank pointed out in its East Asia and Pacific Economic Update Report that the US Iran conflict has pushed up global energy prices, and countries in East Asia and the Pacific are overly reliant on subsidies, making this strategy unsustainable. The report predicts that Middle East oil exports will not be able to recover to pre conflict levels before mid-2027. If the impact persists, subsidy measures will delay necessary adjustments, increase fiscal costs, and deplete foreign exchange reserves. Indonesia, Thailand, and Vietnam have lowered retail gasoline prices, and their US dollar reserves have decreased by 15% to 40% since the beginning of the year. The energy risks are currently offset by the benefits brought by artificial intelligence.
