Commentary: Iran war has raised inflation risks. Why are Asian economies still growing?

SINGAPORE: At the beginning of the Iran war, there was widespread fear that the world was headed for a stagflationary shock – a toxic combination of lower economic growth and high inflation – reminiscent of the 1970s. Then, a series of oil crises triggered by geopolitical tensions in the Middle East sent energy prices soaring, fuelling inflation and battering growth. Some have warned that the Iran war could trigger a crisis far more severe than 50 years ago, with Asia among the most vulnerable given its heavy reliance on Middle East fuel. Such concerns are understandable. The Strait of Hormuz,…