Iran oil shock stirs memories of 1997 Asian Financial Crisis — but here’s why history may not repeat itself

The Hormuz disruption is driving up energy costs and putting downward pressure on Asian currencies, creating growth and inflation headwinds for import-dependent economies. The immediate effect is higher energy-driven inflation and FX weakness across the region, though analysts judge a repeat of the full-scale crisis from three decades ago to be unlikely.

Analysis

The Hormuz disruption is driving up energy costs and putting downward pressure on Asian currencies, creating growth and inflation headwinds for import-dependent economies. The immediate effect is higher energy-driven inflation and FX weakness across the region, though analysts judge a repeat of the full-scale crisis from three decades ago to be unlikely.