Citi sees Asian clients seeking more trade finance, risk support amid Middle East war

[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.