Singapore Deputy Prime Minister Gan Kim Yong said the city-state will revise its economic outlook, if needed, due to the crisis in the Middle East which could push up global energy prices.

“Depending on how protracted the conflict is, higher energy prices could lead to higher costs for businesses and consumers and weigh on the global and Singapore economies,” he told parliament on Monday. “We are monitoring the developments closely and will reassess our GDP and inflation forecasts if necessary.”

The Southeast Asian financial hub, which imports nearly all of its energy needs, is particularly vulnerable to swings in global oil and gas prices. The trade-dependent nation has long cautioned that geopolitical tensions and supply disruptions could fuel inflationary pressures and weigh on growth.

Oil surged by the most in four years, before paring gains as traders assessed the effective closure of the Strait of Hormuz triggered by the US-Israeli war. Global benchmark Brent was more than 6% higher near $78 a barrel, after earlier rallying by as much as 13% to the highest since January 2025.