Widening cost of conflict

When a memorandum of understanding (MoU) intended to bring the Iran war to a formal close within sixty days was announced on June 14, the world, particularly Asian economies dependent on Gulf oil, breathed relief. The Strait of Hormuz, which had been largely shut to shipping since late February, seemed to be slowly reopening, and oil prices retreated from their crisis peaks. The damage the conflict had inflicted on Asian economies — on growth, household budgets, and government finances — appeared to be contained as the ceasefire, no matter how fragile, between the US and Iran spawned hopes of a lasting peace in the region, which supplies around 90 per cent of energy to the Asian economies.…