0250 GMT - If the Middle East conflict isn't defused soon, ripple effects will be felt in Asia-Pacific, Moody's Analytics economists say. They see two scenarios after Iran's attack on Israel: the most likely is a restrained Israel response that de-escalates tensions. The second would see a conflict ramp-up if Israel responds forcefully. "Were that to occur, oil prices could jump to more than $100 per barrel," economists Harry Murphy Cruise, Steve Cochrane and Mark Zandi say. Most APAC economies are net oil importers, leaving them vulnerable to oil shocks. "Even the region's net oil exporters aren't necessarily net winners," the economists say. While Malaysia and Brunei could get a revenue boost, much of this could be offset by weaker global demand as a renewed surge in inflation squeezes households, they say. (fabiana.negrinochoa@wsj.com)
(END) Dow Jones Newswires
April 14, 2024 22:50 ET (02:50 GMT)
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