Oanh Ha

On today's show, we dive into why Asia is feeling more economic pain from this conflict than Western nations and what the new normal looks like for the region and the rest of the world.

While the details of the proposed new deal between the U.S.

and Iran remain unclear, one thing is certain.

War in Iran and the virtual closure of the Strait of Hormuz have effectively slapped a war tax on vital products, and it's impacted every corner of the global economy.

You've probably felt the pinch in one way or another, but its effects haven't been distributed evenly.

Wealthy countries like the U.S.

and Japan have opted to drain their stockpiles of crude oil.

In other corners of the world, governments are turning to demand destruction by encouraging industries and consumers to use less.

But that risks slowing economic growth and triggering recession.

It's a glaring disparity, and Bloomberg's Tracey Alloway says it highlights a structural vulnerability.

You know, I don't know if you guys have noticed in your time here the prices at gas stations.

Do you know how much gas in Hong Kong costs?

No.

About 33 Hong Kong dollars per liter, which is its equivalent of about $16 per gallon.

Wow.

Right?

That's up about 15% since the Iran war began, and diesel prices have actually jumped like near 50%.

And I wonder, how does this stack up to what we've seen in the U.S.?

And I guess more importantly, how does that feed into inflationary pressures?

In some countries with limited resources, governments are left with little choice but to turn the lights off.