New Delhi, Aug 2: Pakistan and Bangladesh are among the Asian economies most exposed to the fallout from the prolonged US-Iran conflict, as surging global oil prices threaten to push up inflation, strain public finances and intensify pressure on already fragile economies, according to economists and research firms.

Both countries depend heavily on imported fuel, making them particularly vulnerable to sustained increases in crude oil and diesel prices, according to a report by South China Morning Post.

Analysts warn that limited fuel inventories and weak economic buffers could allow higher global energy costs to feed quickly into domestic prices, raising the cost of transport, electricity and food for millions of households, the report said.

Jamus Lim, Associate Professor of Economics at ESSEC Business School Asia-Pacific cited by the report, said Pakistan and Bangladesh are likely to face significant inflationary pressures in the near term.

He noted that limited inventory buffers mean the impact of higher oil prices would be transmitted relatively quickly through their economies.

Oil markets have already reflected growing concerns over the conflict. Brent crude has climbed sharply over the past month, while US benchmark West Texas Intermediate (WTI) has recorded similar gains.

Diesel and other refined fuel products have also posted double-digit increases, adding to concerns over rising energy costs worldwide.

The risks have extended beyond the Gulf region after a drone strike targeted gas vessels at Egypt’s Mediterranean port of Damietta, heightening concerns over shipping routes linked to the Suez Canal, one of the key pathways for Saudi oil exports.

For Pakistan and Bangladesh, another energy-price shock could place renewed pressure on currencies, fiscal balances and government subsidy programmes.

Both countries are implementing International Monetary Fund (IMF)-supported economic reform programmes that emphasise fiscal discipline, limiting their ability to cushion consumers from higher fuel prices through subsidies.

The conflict, now in its fifth month, has added to uncertainty after US President Donald Trump weighed further military action following Iranian attacks on American military assets in Jordan, Kuwait and Bahrain.

Oxford Economics has warned that several emerging markets, including Pakistan, Egypt, Mozambique, Nigeria and Kenya, face a combination of geopolitical risks, political uncertainty and rising debt-servicing costs.

According to the research firm, countries such as Pakistan, Mozambique, Kenya, Ghana and Tunisia, which have relatively thin foreign exchange reserve buffers, could experience the sharpest deterioration if the conflict intensifies.

Tehran, Aug 2: Iranian Foreign Minister Seyed Abbas Araghchi warned the United States against taking any “adventurous” actions, saying those responsible would bear the consequences, according to Iran’s semi-official Mehr news agency.

Araghchi made the remarks during separate phone conversations with Pakistan’s Chief of Army Staff Asim Munir, Turkish Foreign Minister Hakan Fidan and Saudi Foreign Minister Prince Faisal bin Farhan Al Saud, during which they exchanged views on the latest regional developments, Mehr said in a report.

Araghchi told Munir and Fidan that Iran was fully prepared to safeguard its national sovereignty, territorial integrity and national security, and would respond decisively to any act of aggression, reports Xinhua news agency.

In talks with his Saudi counterpart, Araghchi warned that any hostile US or Israeli action, as well as any regional support for it, would draw a firm, proportionate response from Iran’s armed forces, it added.

Also on Saturday, Iran’s Foreign Ministry accused the United States of violating the peace memorandum of understanding they reached mid-June, citing its continued strikes on Iranian targets, blockade on Iranian ports and commercial shipping, and stepped-up economic pressure.

In a statement, the ministry vowed to continue to resist US “unlawful aggression” and to firmly defend its national dignity and independence.

The remarks followed renewed exchanges of airstrikes between the United States and Iran after days of pause.

Before the pause, the United States had launched multiple waves of strikes against Iranian targets, saying they were in response to Iranian attacks on vessels in the Strait of Hormuz and aimed at “degrading Iran’s ability to threaten commercial shipping.”

Earlier, Araghchi has warned Britain against any military cooperation with the United States in carrying out strikes on Iran.

Araghchi made the remarks during a phone call with British Foreign Secretary Ed Miliband on Friday, stressing that any cooperation with “aggressors,” including under the pretext of existing defense agreements, would be “unacceptable,” according to a statement issued by the Iranian Foreign Ministry on Saturday.

Tokyo, Aug 2: The death toll from a powerful earthquake that struck Japan’s Kumamoto Prefecture has risen to 38, the prefectural government said Sunday.

At a disaster response headquarters meeting held Sunday morning, Kumamoto Prefecture Government officials announced that 38 people had died, including those whose deaths are still being investigated to determine whether they were caused by the magnitude 7.1 tremor, Xinhua news agency reported.

At a Nippon Paper factory in Yatsushiro City, where the earthquake caused a smokestack to collapse, rescue teams pulled 10 people from the site. Eight of them were confirmed dead, while two sustained injuries. Another person who had been missing was found in the rubble shortly after noon on Thursday, though the individual’s condition has not yet been disclosed.

At Aeon Mall Kumamoto in Kashima Town, where a large explosion occurred after the earthquake, 12 people have been rescued. Seven of them were confirmed dead, and five were injured. Police and firefighters are continuing search operations to determine whether anyone else remains trapped inside the building.

More than 9,400 people are currently staying at 406 evacuation shelters across the prefecture, officials said.

The earthquake has also left approximately 79,700 households without water. Local authorities said there is currently no timetable for restoring water service in any of the affected municipalities.

Meanwhile, around 19,000 households remained without electricity as of Thursday afternoon. According to Kyushu Electric Power, power is expected to be restored by Friday evening if repair work proceeds as planned.

On Wednesday, Japanese Prime Minister Sanae Takaichi held the Second Extraordinary Disaster Countermeasures Headquarters Meeting for the Kumamoto earthquake. Kumamoto Prefecture Governor Kimura, as well as Deputy Minister Tsushima of the Cabinet Office, attended the meeting virtually.

Takaichi offered condolences to the victims and expressed sympathies with the bereaved families. She assured that the Japanese government is working swiftly to assess the damage caused by the earthquake, while relevant ministries and agencies are working to address initial responses.