How the Iran war has sent shocks rippling across the globe

## Summary
Photograph: Ritesh Shukla/Getty Images View image in fullscreen People gather near a liquefied petroleum gas (LPG) cylinder distribution agency in India, after supply issues caused by the war in Iran. Photograph: Ritesh Shukla/Getty Images How the Iran war has sent shocks rippling across the globe From restaurant closures in the Philippines and petrol rationing in Sri Lanka, to Asian food production crises due to fertiliser shortages, the effects of the US-Israeli war on Iran reverberate around the world From the Philippines cutting down to a four-day week to save electricity, to restaurants in India taking gas-intensive dishes off the menu, and rents being frozen in Spain, the economic fallout of the US-Israeli war on Iran has reverberated around the world. Campaigners who have long advocated a shift to electric cooking say the crisis should serve as a wake-up call. “This moment has made us realise how critical the cooking fuel vulnerability is,” said Neha Dhingra, of the India Program at the Collaborative Labeling and Appliance Standards Program (CLASP). ‘Waiting for days’: India feels impact of gas supply chain disruption amid Iran conflict Read more India’s rupee posted its biggest plunge in four years on Friday, crashing on worries that soaring oil and gas prices will massively drive up India’s import bill and act as a brake on economic growth. View image in fullscreen According to the International Food Policy Research Institute, a prolonged closure of the strait of Hormuz could affect fertilisers and food production costs, with 30% of global fertiliser passing through the strait.

## Article Content
People gather near a liquefied petroleum gas (LPG) cylinder distribution agency in India, after supply issues caused by the war in Iran.
Photograph: Ritesh Shukla/Getty Images
View image in fullscreen
People gather near a liquefied petroleum gas (LPG) cylinder distribution agency in India, after supply issues caused by the war in Iran.
Photograph: Ritesh Shukla/Getty Images
How the Iran war has sent shocks rippling across the globe
From restaurant closures in the Philippines and petrol rationing in Sri Lanka, to Asian food production crises due to fertiliser shortages, the effects of the US-Israeli war on Iran reverberate around the world
From the Philippines cutting down to
a four-day week
to save electricity, to restaurants in India taking gas-intensive dishes off the menu, and rents being frozen in Spain, the economic fallout of the US-Israeli war on Iran has reverberated around the world.
Facing an existential threat, Tehran has retaliated by closing the vital Hormuz shipping lane and bombing its oil and gas-rich neighbours, compounding a deepening crisis abroad for businesses and families.
The International Energy Agency has
described
the situation as the largest supply disruption in the history of the global oil market.
While Europe and the Americas are bracing for impacts, billions of people elsewhere, especially in Asia, are already feeling serious repercussions.
Here is a look at how the conflict has sent out economic shocks rippling across the globe:
1.
‘Fighting today to survive tomorrow’: Shrinking restaurant menus across India
Sagar Daryani, president of the Restaurant Association of India, a body representing half a million restaurants, said the sector was operating under severe constraints, with businesses cutting hours, shrinking menus and relying on temporary fixes to stay open.
View image in fullscreen
In Kolkata, the Arsalan restaurant chefs cook biryani in traditional cooking pots amid disruptions in commercial LPG supply.
Photograph: Sahiba Chawdhary/Reuters
He estimated that about a third of restaurants are significantly affected. “It’s a thin line between fighting today to survive tomorrow,” he said.
There are reports that restaurants are taking slow-cooked dishes off the menu to conserve gas, while others have shut down altogether.
Campaigners who have long advocated a shift to electric cooking say the crisis should serve as a wake-up call. “This moment has made us realise how critical the cooking fuel vulnerability is,” said Neha Dhingra, of the India Program at the Collaborative Labeling and Appliance Standards Program (CLASP).
‘Waiting for days’: India feels impact of gas supply chain disruption amid Iran conflict
Read more
India’s rupee posted its biggest plunge in four years on Friday, crashing on worries that soaring oil and gas prices will massively drive up India’s import bill and act as a brake on economic growth. The country is seen as one of the most vulnerable to an energy shock, as it imports nearly 90% of its oil and half its gas – much of it from the Gulf, while millions of Indian workers in the region send home more than $50bn a year.
Aakash Hassan
and
Penelope MacRae
in Delhi
2.
‘Everything has been impacted’: cancelled hotel bookings in tourism-dependent Thailand
At this time of year, Suwarin Nantaya’s company would normally get about 30 email inquiries a day from tourists wanting to book trekking tours through the mountainous jungles of northern Thailand. Since war erupted, inquiries have dropped to just three a day. Lots of pre-booked customers have cancelled.
“They are afraid that they will not find any flight back home,” said Suwarin of Chiang Mai Trekking. “Everything has been impacted – hotels, restaurants, souvenir shops, massage spas.” Usually Chiang Mai’s walking street, where tourists browse food and souvenir stalls, would still be busy at 9 or 10pm, she added, but now businesses are far more quiet.
View image in fullscreen
Outside Central Festival in Chiang Mai, Thailand.
Photograph: Nuttapong Wannavijid/Alamy
Since the war erupted, about 1,000 Thailand-bound flights have been cancelled, according to Aeronautical Radio of Thailand.
Thailand’s tourism ministry has predicted that an eight-week closure of airspace, which it considers a worst case scenario, could result in 600,000 fewer international arrivals, and losses of 41bn baht (£934.4m).
Fuel rations and no air con: south-east Asian nations race to conserve energy
Read more
Rebecca Ratcliffe
in Bangkok
3.
A QR system for petrol rationing in far-away Sri Lanka as the ‘big guys’ fight
At a fuel station in Colombo, a long queue had already formed by 5.30am one morning this week, composed of three-wheeled autorickshaws, cars and motorbikes used by delivery drivers. A group of people pushed a car that had completely run out of petrol towards the fuel pumps.
The country has reverted to using a QR system for fuel rationing that was introduced during the 2022 economic crisis.
View image in fullscreen
A man ch

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## Expert Analysis

### Merits
N/A

### Areas for Consideration
- Facing an existential threat, Tehran has retaliated by closing the vital Hormuz shipping lane and bombing its oil and gas-rich neighbours, compounding a deepening crisis abroad for businesses and families.
- But he adds: “We are just putting shock after shock, and that’s what is pretty bad.” Fuel rations and no air con: south-east Asian nations race to conserve energy Read more A rice seed farmer in Thailand told the Guardian she was fortunate that her land is already well fertilised, but fuel shortages are posing a major problem.

### Implications
- Campaigners who have long advocated a shift to electric cooking say the crisis should serve as a wake-up call. “This moment has made us realise how critical the cooking fuel vulnerability is,” said Neha Dhingra, of the India Program at the Collaborative Labeling and Appliance Standards Program (CLASP). ‘Waiting for days’: India feels impact of gas supply chain disruption amid Iran conflict Read more India’s rupee posted its biggest plunge in four years on Friday, crashing on worries that soaring oil and gas prices will massively drive up India’s import bill and act as a brake on economic growth.
- Lots of pre-booked customers have cancelled. “They are afraid that they will not find any flight back home,” said Suwarin of Chiang Mai Trekking. “Everything has been impacted – hotels, restaurants, souvenir shops, massage spas.” Usually Chiang Mai’s walking street, where tourists browse food and souvenir stalls, would still be busy at 9 or 10pm, she added, but now businesses are far more quiet.
- Thailand’s tourism ministry has predicted that an eight-week closure of airspace, which it considers a worst case scenario, could result in 600,000 fewer international arrivals, and losses of 41bn baht (£934.4m).
- For the regime in Iran, attacking Europe is a means to show that it is still a force to be reckoned with, said Rebecca Schönenbach, a Swiss-based specialist on counter-terrorism. “It’s a propaganda war as much as a military war, and wherever they can score, they will.” Ashifa Kassam in Madrid 5.

### Expert Commentary
This article covers war, fuel, fertiliser topics. Areas of concern are also raised. Readability: Flesch-Kincaid grade 0.0. Word count: 2447.