Analysts warn that the ongoing conflict with Iran risks sending South Asian economies, including Sri Lanka, Pakistan, and Bangladesh, to the brink. The region's heavy reliance on Middle Eastern fuel and remittances threatens food and energy security.

While the Iran war has sent shock waves through energy markets across Asia, one corner of the region has been hit especially hard. South Asia’s reliance on Middle Eastern fuel and Gulf remittances threatens to push some of its most exposed economies to the brink, analysts warn, as the conflict drives energy and food costs to multi-year highs. For Sri Lanka, Bangladesh and Pakistan, whose International Monetary Fund bailout programmes and thin fiscal buffers limit their ability to shield citizens...