The Asian Development Bank has launched an emergency funding package to support countries hit by Middle East conflict fallout, reversing its fossil fuel financing restrictions. ADB president Masato Kanda told the Financial Times that Asian and Pacific nations face severe impacts from oil price volatility, with many being net energy importers. The Manila-based institution will now include oil purchases in its trade finance program, reversing last year's decision to exclude fossil fuels.

Sri Lanka became the first country to request additional support, seeking an extra $100 million for its tourism sector battered by global airline disruptions. Bangladesh has also formally requested financial assistance. Kanda emphasized that small island nations like the Maldives and Tonga, along with energy-dependent countries such as South Korea, Thailand, and Pakistan, are particularly vulnerable. Tourism-dependent economies and nations reliant on Middle East remittances, including Nepal, face additional pressures.

The ADB is monitoring how shipping disruptions affect commodities like petrochemicals and fertilizers, which could impact Asian industrial and agricultural production. With $29.1 billion in funding committed last year to Asia-Pacific development, the bank stands ready to support other nations as formal requests come in. Kanda warned that prolonged conflict would create increasingly dangerous conditions for the region's economies.