Citi sees Asian clients seeking more trade finance, risk support amid Middle East war
Firms and governments in Asia are reassessing their reliance on the Middle East for oil and energy supplies
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[SINGAPORE] Asian companies are turning to banks for trade finance, liquidity support and risk-mitigation tools as the Middle East conflict strains energy supply chains, pushes up costs and forces some buyers to look beyond long-standing suppliers.
The conflict, which started in late February, has disrupted flows through the Strait of Hormuz – a key conduit for oil and gas shipments – sharpening energy-security concerns for Asia’s import-dependent economies.
While many clients had initially expected the war to end quickly, that wait-and-see approach has started to shift as the conflict shows signs of becoming more prolonged, said Mridula Iyer, head of services for Asia South at Citi.
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