Singapore's Deputy Prime Minister Gan Kim Yong warned that the city-state may revise its economic outlook as the Middle East crisis threatens to push up global energy prices. The trade-dependent nation, which imports nearly all its energy, is particularly vulnerable to oil price swings. Gan told parliament that prolonged conflict could increase costs for businesses and consumers, weighing on both global and Singapore economies.

Singapore has long cautioned that geopolitical tensions and supply disruptions could fuel inflationary pressures and slow growth. The nation's economy relies heavily on international trade, making it sensitive to global energy market volatility. Gan emphasized that authorities are monitoring developments closely and will reassess GDP and inflation forecasts if necessary, signaling potential policy adjustments ahead.

Oil prices surged by the most in four years, with Brent crude jumping over 6% to near $78 a barrel after earlier rallying as much as 13% to the highest since January 2025. The spike followed the effective closure of the Strait of Hormuz amid the US-Israeli conflict. For Singapore, which has limited domestic energy resources, such price volatility poses significant economic risks that could force a downward revision of growth projections.