Goldman Sachs: The energy shock triggered by the war in Iran is undoubtedly bad news for Asia in the short term.

Andrew Tilton, Chief Economist of Goldman Sachs Asia-Pacific, stated in a report that the energy shock caused by the Iran conflict is undoubtedly bad news for Asia, at least in the short term. The bank's commodities team predicts that for the rest of this year, crude oil and natural gas prices may increase by over 20% and 30% respectively. Rising energy prices may weaken the macroeconomic outlook for the entire region, leading to deteriorating current account balances, pushing up inflation, and weighing down growth. Tilton added that the energy shock could disrupt some economies' previously positive outlook for 2026. Goldman Sachs predicts that as export growth slows, putting pressure on governments to support domestic demand, government spending will increase and fiscal deficits will widen.