Evening Briefing Asia

Cost of Mideast Conflict Rises Across World With No Deal in Sight

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Economic burn out: Employees of Basra Oil Company work at the Nahr Bin Umar oil and gas field on the outskirts of the Iraqi city of Basra.Photographer: Hussein Faleh/AFP

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By Richard Frost

May 18, 2026 at 9:10 AM UTC

The cost of the protracted Iran conflict is mounting around the world. And yet the prospect of a deal to end the stalemate seems as remote as ever.

In the US, traders have flipped from expecting the US to cut interest rates this year to increasingly seeing the prospect of a rate hike. China’s already weak consumer sentiment is being exacerbated by rising commodity prices. Japan and Thailand are planning additional spending to offset the impact of the war.