US-Israel War Against Iran Causes Asia Losses of Rp5,000 Trillion, Millions at Risk of Poverty!

The conflict between the United States and Iran is now showing tangible impacts, particularly for the Asian region, which heavily relies on energy supplies from the Middle East. Amid this uncertainty, economists are calculating the resulting losses. The figures are substantial. The estimated losses reach hundreds of billions of dollars, accompanied by the threat of rising global poverty rates. A report from the United Nations Development Programme states that military escalation in the Middle East could cause economic losses in the Asia-Pacific region between US$97 billion and US$299 billion, equivalent to approximately Rp1,649 trillion to Rp5,083 trillion. These losses equate to about 0.3 to 0.8 percent of the region’s total gross domestic product (GDP). Furthermore, the conflict is estimated to drive around 32 million people worldwide into poverty, with 8.8 million of them from the Asia-Pacific. One of the main triggers of this economic pressure is the disruption of global energy distribution routes, particularly in the Strait of Hormuz. This route is known as a vital chokepoint through which about 20 percent of the world’s oil and gas supplies flow. The blockade imposed by US President Donald Trump on this route has stalled the flow of energy trade. The impact is immediately felt in the surge of oil, gas, transportation, and electricity costs in various countries. The UNDP’s Asia-Pacific regional director, Kanni Wignaraja, explained the magnitude of the shock. “What you are seeing is a kind of instant and massive shock, where everything stops and energy reserves start being used,” she said, as quoted from CNN on Tuesday, 14 April 2026. “If countries adapt very quickly, then the loss to the regional GDP is in the range of US$97 billion to US$100 billion. However, that figure could triple if energy reserves run out and countries do not have many options.” This situation is further exacerbated because Asia is the world’s most populous region and the global manufacturing centre. Economic disruptions in this area have the potential to trigger a domino effect worldwide. In addition to the energy sector, threats also come from the food sector. The Food and Agriculture Organization warns that supply disruptions from the Middle East could trigger a global food crisis.