Bangkok: The war in the Middle East and the resulting blockade of the Strait of Hormuz have hurt businesses throughout Asia as prices of raw materials skyrocket and fears of shortages grow. Taiwan has tried to contain some of the potential economic damage by having state-run fuel and power companies absorb some of the increases in natural gas and oil costs. Southeast Asia, however, has struggled to adapt, given its greater dependence on Middle East resources, as Taiwanese businesspeople there have found out.

According to Focus Taiwan, "The price hike happened almost overnight," said Kuo Hsiu-min, a Taiwanese entrepreneur who has run a high-grade PVC plastics manufacturing business in Thailand for more than 30 years. She told CNA that raw material costs had surged by roughly 50 percent in the weeks after the war in the Middle East began. Kuo was one of several businesspeople attending a recent Taiwanese community gathering in Bangkok who expressed concern about the uncertainty that existed and the scope of the economic challenges.

Taiwanese businesses in Thailand have reason to be worried. Thailand gets 52.6 percent of its crude oil, natural gas, and refined fuel from the Middle East, according to the Trade Policy and Strategy Office. It saw diesel prices soar to a historic high of about 50 baht per liter (about NT$49.65) in early April as the Middle East tensions intensified, and the Bank of Thailand recently adjusted its 2026 economic growth forecast to 1.5 percent, down from a 1.9 percent projection made in February.