Seven ministries and one agency on alert for Middle East fallout

The fighting in the Middle East has widened from conflict inside Iran into a broader regional escalation, with knock-on impacts across the economy, energy and travel. Flight services have been suspended in some areas due to airspace closures, leaving passengers stranded and triggering wider disruptions.

Since the incident on February 28, seven ministries and one agency have gone on alert over the Middle East conflict, as follows:

Ministry of Finance

The ministry has set up an “Economic War Room” to monitor and assess economic conditions. The Fiscal Policy Office (FPO) is serving as the lead coordinator, working with the National Economic and Social Development Council (NESDC), the Budget Bureau, the Bank of Thailand (BOT), the Securities and Exchange Commission (SEC) and the Stock Exchange of Thailand (SET) to analyse economic impacts in all dimensions.

Ministry of Foreign Affairs

The ministry has established a war room together with Thai embassies and consulates-general across the region to monitor the security situation and assist around 110,000 Thai nationals in the Middle East. It is also preparing evacuation plans should it become necessary to move people out of high-risk areas.

Ministry of Labour

A war room has been set up on the 5th floor of the ministry to coordinate assistance for Thai workers 24 hours a day, and to prepare plans to relocate workers to safe areas if an evacuation order is issued.

Ministry of Transport

A war room has been established to look after stranded passengers and tourists at airports due to airspace closures in some areas, and to facilitate support through Airports of Thailand (AOT).

Ministry of Energy

The ministry has opened an emergency energy-monitoring centre to track reserve levels and manage oil prices via the Oil Fuel Fund, coordinating with relevant agencies to oversee energy prices for both fuel and electricity. 

It has also issued necessary announcements and preparations, including: a temporary suspension of oil exports; readiness to use the Oil Fuel Fund to subsidise prices; increased gas production in the Gulf of Thailand; and running coal- and hydropower plants at full capacity to reduce the impact of potential LNG shortages in the future.

PTT sets up a war room to manage energy security

In addition, PTT Plc has set up its own war room by activating the PTT Incident Command System (PTT ICS) as a business continuity management centre. 

The aim is to manage risks to energy security and import costs, coordinate with refineries to source oil from regions outside the Middle East, and plan alternative offloading ports to avoid the Strait of Hormuz.

The focus is on risk management in three main areas: Thailand’s national energy security, energy import costs, and securing alternative energy sources, to ensure the country has sufficient energy supplies on a continuous basis.

Ministry of Commerce

With tensions in the Middle East showing signs of intensifying and potentially affecting global economic stability—especially in energy, logistics and financial market confidence—the ministry has instructed all affiliated agencies to closely track and assess developments, analysing the situation on a day-by-day basis.

Ministry of Industry

The ministry has instructed its agencies to monitor and assess day-to-day impacts, particularly on logistics and production costs. It has assigned relevant bodies to examine expected effects, while the Office of Industrial Economics (OIE) is monitoring developments closely to assess implications for Thai industry and produce a systematic response plan.

Six areas of economic risk identified

The Ministry of Finance and related agencies have summarised six key areas of economic impact from the Middle East situation:

• Energy and costs: Risk of closure of the Strait of Hormuz could push crude oil prices up to US$100–105 per barrel, affecting electricity bills and production costs—particularly in diesel-intensive industries such as iron and steel (impact 7.93%) and dyeing/finishing (6.31%).
   
• Trade and supply chains: Freight rates and risk insurance premiums are likely to rise. Rerouting to avoid conflict zones could cause delays and higher transport costs.
   
• Tourism: Airspace closures and flight cancellations affect long-haul travellers. Higher airfares could also weaken traveller confidence.
   
• Inflation: While Thailand’s inflation is currently low (-0.7% in January 2026), volatile energy prices could pressure import costs. If the situation does not drag on, the impact is expected to be limited.
   
• Money and capital markets: Markets may move into a risk-off environment, with investors shifting into safe-haven assets such as the US dollar and gold. This could put short-term downward pressure on the baht.
   
• Labour: The safety of 110,000 Thai workers in the area is the top priority, with close coordination underway to prepare evacuation plans going forward.