Democrats call for measures to mitigate fallout of Iran-Israel conflict

Alongkorn Pollabutr, deputy chief of the party’s strategic panel, said conflicts in the Middle East had escalated after Iran launched over 200 drone and missile attacks on Israel on Saturday night.

If Israel decides to retaliate, it would worsen the situation, Alongkorn said.

Iran’s attacks were a retaliation for Israel’s bombing of Iran’s consulate in Syria on April 1.

“The government should urgently hold a meeting of economic ministers and the energy minister to formulate measures to cope with short-term and long-term economic impacts,” Alongkorn said.

“If the war escalates, Thailand’s economy would be affected by rising global oil prices, global economic slowdown and fluctuation of the global financial markets,” he warned.

Alongkorn said rising global oil prices would spike inflation, affecting consumption and exports as well as gross domestic product.

Alongkorn quoted an analyst as warning that if the Middle East conflicts escalated into a full-scale war, the Strait of Hormuz might be closed and the price of crude oil could rise to about US$94.3 per barrel.

Alongkorn said Thailand’s oil imports accounted for around 7.8% of GDP each year, which would shoot up if crude oil prices rose.