Experts at the United Nations Economic and Social Commission for Asia and the Pacific (UN-ESCAP) say risks and opportunities for South Asia have emerged out of the present conflict in the Middle East.

According to the experts, rising geopolitical tensions in the Middle East are testing the resilience of global systems, including peace, trade and energy markets, a press release from UN-ESCAP states.

It adds that as a major supplier of oil and gas and a key global trade route, disruptions in the Middle East create serious challenges for countries that depend on imported energy, such as those in South Asia, which are particularly vulnerable due to their strong reliance on external energy supplies.

UN-ESCAP says for many developing economies, this leads to higher energy prices, increased transport costs and growing economic pressure.

Stronger regional cooperation is essential to move forward, and expanding cross-border electricity trade, improving grid connectivity, and sharing technical expertise can reduce costs and meet growing demand.

For South Asia, the current tensions are not distant geopolitical events; they have a direct impact on overall economies, as a major share of energy comes from oil.

Past experience shows how volatile oil prices can trigger instability in Sri Lanka, and countries such as the Maldives and Pakistan have also faced economic pressure.

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