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Hormuz toll plan threatens higher energy costs for Asian economies
The disruption follows a breakdown in the US-Iran ceasefire and comes as economists expect elevated costs and strained shipping flows.
The latest breakdown of the US-Iran ceasefire has raised concerns in Asia, with markets now facing renewed risk tied to the Strait of Hormuz, according to SCMP Economy.
SCMP Economy says Washington’s planned blockade-cum-toll could keep energy costs elevated and place additional pressure on shipping flows passing through the region.
While some economists and shipping analysts expect the impact, they also argue Asia is better positioned this time to absorb the shock than in prior episodes.
The article notes oil prices jumped to a one-month high amid the renewed threat to regional energy and logistics.