South Asia in March 2026: the most important developments in economy
South and Southeast Asia's economies in March 2026 were dominated by the war involving Iran, the closure of the Strait of Hormuz and the jump in oil prices. Airlines arranged special repatriation flights to bring citizens home, while others suspended or cut services: Cathay Pacific suspended Dubai flights until April 30, around 1,000 flights to Thailand were cancelled, and airlines reduced flights to Singapore and Bangkok amid jet fuel shortages. Oil reached $100 a barrel. Thailand's stock index fell 8% on March 4 and trading was halted, and by March 30 Southeast Asian companies had reportedly lost over $200 billion in market value. Iran introduced a $2 million transit toll for ships in the strait, and it agreed safe passage for Thai tankers and opened the route to India.
Governments responded with fuel measures. The Philippines moved to a shorter work week and on March 24 declared a national energy emergency, then suspended electricity spot market trading and received Russian oil. Sri Lanka introduced a four-day work week and a QR code fuel system and raised fuel prices by 25% twice in two weeks. Bangladesh rationed fuel, received diesel from India through the Friendship Pipeline and sought a $2 billion financial lifeline. Thailand banned petroleum exports, abandoned its fuel price caps and saw fuel prices jump 22% after subsidy cuts. Vietnam waived its environmental tax on fuel, and Indonesia sought $5 billion, while Fitch cut its outlook on Indonesia to negative. ASEAN states worked on a regional fuel-sharing agreement, and Russia and Vietnam signed an agreement to build a nuclear power plant.
Elsewhere, the United States lifted sanctions on some Iranian oil exports. Singapore was named, with 15 other economies, in a new U.S. unfair-trade probe, and it said it would engage with the U.S. Trade Representative. Malaysia raised its 2026 growth forecast, saying the impact of the war appeared contained. Asian stock markets rose on March 10 as the oil supply outlook improved, and Singapore bonds stayed stable.
by WorldBrief & Maksim Micheliov | AI-generated summary
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