SM Lee: 'The war has begun' after US-Israel strikes on Iran, warns of energy-price shock

SM Lee warns of spillover to Singapore

Senior Minister Lee Hsien Loong said the escalation in the Middle East will push up energy prices and affect countries far from the conflict, including Singapore, speaking at a Chinese New Year dinner at Teck Ghee Community Club on February 28, 2026.

He told residents: “Today, Israel and the US together attacked Iran, jointly. The war has begun. Iran has struck back,” adding that while it is clear when a war starts, it is “very hard to tell how the war will end.”

Retaliation across the region and uncertainty ahead

Lee said Iran had already struck back at targets across the Middle East, and warned the wider security situation remained unsettled and unpredictable.

Higher energy prices and weaker trade mood

He cautioned that the conflict would lift energy prices and add to an uncertain global climate that would dampen sentiment for trade and investment—risks Singapore is especially exposed to as a small, open economy reliant on global flows.

Tariffs add to volatility for businesses

Lee also pointed to rapid shifts in US tariff policy, noting the uncertainty makes it hard for companies to plan and invest with confidence.

“Prepare ourselves”: upgrading, especially in AI

Lee said Singapore cannot control external shocks, but can strengthen resilience at home—highlighting government support to help workers and businesses upgrade, including training and adoption of Artificial Intelligence (AI), so people can stay valued in the workplace and firms remain competitive.