War-Fueled Economies

Ongoing Gulf Conflict Disrupts Global Markets

The Gulf conflict shows no signs of abating, leading to significant disruptions in international trade. According to reports, Chinese authorities have instructed major oil refiners to halt exports of gasoline and diesel. This move is already affecting the transportation of key commodities such as fertilizers, chemicals, aluminum, as well as natural gas and petroleum products.

In the coming days, several nations are expected to reach their storage limits, forcing them to scale back production. Additionally, the crisis is impacting remittances sent by workers from the Gulf region—an essential source of income for countries like India and the Philippines.

While the US dollar remains relatively strong, it continues to trade within established boundaries. The turmoil is fueling concerns over rising energy costs and broader inflationary pressures.