Goldman Sachs warns of rising inflation in emerging Asian markets due to potential closure of the Strait of Hormuz.

Goldman Sachs analysts noted in a research report that the protracted conflict in the Middle East could put pressure on emerging Asian economies. Goldman Sachs estimates that if the Strait of Hormuz were closed for six weeks, oil prices could rise to $85 per barrel. In this scenario, the region's inflation rate could rise by about 0.7 percentage points, with the Philippines and Thailand being the most sensitive. Supply disruptions could drag down real GDP growth in the region by an average of 0.5 percentage points, with Singapore being the most severely affected. Goldman Sachs added that the current account balance of almost all countries in the region is likely to deteriorate, with Thailand and Singapore leading the way. (Jinshi)