Bangkok: The Federation of Thai Industries (FTI) is set to discuss the impact of the ongoing conflict between the United States, Israel, and Iran, amid concerns that the situation might escalate, affecting energy costs and shipping rates.
According to Thai News Agency, the FTI is taking proactive steps by convening a meeting tomorrow morning to assess the potential repercussions of the conflict, prior to attending a meeting with the Prime Minister. Mr. Kriengkrai Thianukul, President of FTI, highlighted that the private sector is vigilantly observing the tense developments in the Middle East. Particularly concerning is Iran's response following the announcement by former President Donald Trump that Ayatollah Ali Khamenei, Iran's Supreme Leader, and his family were killed during a large-scale airstrike led by the United States and Israel. Mr. Thianukul warned that such a retaliation could result in a prolonged conflict, drawing parallels with the five-year-long Russia-Ukraine dispute.
The Middle East holds a crucial role as a major producer and exporter of crude oil and natural gas, with Thailand depending significantly on energy imports from the region, transported via the Strait of Hormuz. Any disruption, such as Iran potentially closing the Strait, could lead to elevated energy costs and shipping rates. While the immediate concern centers around energy transportation, Thailand's exports to the Middle East currently remain stable.
The FTI is not taking these threats lightly and has organized a meeting with various industry sector working groups to deliberate on the possible impacts of the conflict. They aim to develop risk management strategies should the situation escalate and the Strait of Hormuz remain closed for an extended period. Mr. Thianukul emphasized the importance of comprehensive risk management approaches, which will be discussed before the FTI's meeting with Prime Minister Anutin Charnvirakul. The Prime Minister has called an urgent meeting involving both public and private sectors to strategize on minimizing potential impacts on the public, including the management of domestic oil stocks across short, medium, and long-term scenarios.