Lawrence Wong says markets may take months to stabilise even after Mideast tensions ease
The global energy and supply chain crisis will continue well beyond the reopening of the Strait of Hormuz, Singapore’s prime minister warned on Friday, saying that markets may take months to stabilise even after tensions ease.
Speaking at a May Day Rally attended by more than 1,600 union leaders and tripartite partners, Lawrence Wong said the ongoing disruption, linked to the closure of the strait and broader geopolitical tensions involving Iran and the US, has created one of the most severe external shocks Singapore has faced in recent years, said a statement by his office.
“Here in Asia, we are especially affected because of our high dependence on energy and other critical supplies from the Gulf. Some countries in our region are already facing fuel shortages,” Wong said.
He cautioned that even if the waterway reopens, a return to normal conditions will not be immediate due to damaged energy infrastructure, navigational risks such as uncleared mines, and the need to restore confidence in safe shipping routes.
He warned that households and businesses should prepare for a more difficult period ahead, with pressures likely to intensify.
“So we must brace ourselves — and be prepared for a more difficult period ahead. And I want to be upfront with all of you, so that we are mentally prepared,” he said.
The Strait of Hormuz has remained closed or throttled for over two months amid escalating regional tensions, causing fuel shortages and supply constraints across Asia.
The US and Israel began strikes on Iran on Feb. 28, prompting retaliation from Tehran against US allies in the Gulf and the closure of the Strait of Hormuz.
A ceasefire was announced on April 8 through Pakistani mediation, followed by talks in Islamabad on April 11, but no agreement was reached.
US President Donald Trump later unilaterally extended the truce without setting a new time frame, at Pakistan’s request. — Anadolu Agency
