Morgan Stanley Highlights Supply Risks for Asia Amid West Asia Tensions

Morgan Stanley warns that ongoing tensions in West Asia could disrupt supply chains beyond oil and gas, affecting key raw materials like fertilizers, aluminium, and petrochemicals vital to Asian industries. Countries such as India, South Korea, Thailand, and Taiwan face significant energy supply risks due to heavy reliance on Middle Eastern imports. Early disruptions have led to measures like LNG rationing and fuel subsidies. However, inventories and alternative sourcing, including increased Russian oil purchases by India, may mitigate immediate shocks.