Rising oil prices triggered by escalating tensions in West Asia are putting pressure on South Asia's most vulnerable economies. Pakistan and Bangladesh, both heavily dependent on imported energy, face risks of higher inflation, weaker currencies, and mounting fiscal challenges. This edition of This Week in Asia explores how a potential oil shock could impact millions across the region.

Pakistan, Bangladesh brace for oil shock

The European Central Bank has kept interest rates unchanged, as widely expected. But while the decision itself was uneventful, the message from ECB President Christine Lagarde was notably more cautious.

Oil shock back for Global Central Banks | World Business Watch 

Global energy markets are facing renewed uncertainty as Brent crude oil prices surge above $94 per barrel amid rising US-Iran tensions. Analysts warn that crude prices could approach $100 per barrel soon, while a worst-case scenario could push Brent back toward $120 if oil flows through the Strait of Hormuz are severely disrupted.

The Strait of Hormuz remains one of the world's most important energy routes, carrying millions of barrels of oil every day. Any escalation in the Middle East could trigger a fresh oil shock, impacting fuel prices, inflation, and global economies.

Goldman warns: Brent could top $120 again | Wion News  | World Business Watch 

The Iran war has triggered what analysts are calling one of the worst oil shocks in modern history, sending crude prices soaring and rattling global markets. Fears over disruptions in the Strait of Hormuz — a key global oil route  have intensified concerns about fuel inflation, energy shortages and economic instability worldwide.

Iran War Sparks Worst Oil Shock in History

Pakistan is experiencing a severe fuel crisis in March 2026, driven by Middle East conflict disrupting oil supplies, resulting in over 20% price hikes. Petrol prices exceeded PKR 320/litre, causing panic buying and shortages as the nation imports over 80% of its energy. The government has introduced austerity measures, including salary cuts and reduced official travel. 

Pakistan Economy Under Fire: GDP May Shrink 1.5% Amid Oil Shock

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