As Iran war rolls on, some executives say the 'worst is behind us'

• Temasek's CIO stated 'the worst is behind us' from a market perspective, with peak uncertainty over despite ongoing tail risks and conflict escalation
• Thailand's Vice Finance Minister noted energy imports represent 8% of GDP but sees the crisis as an opportunity to accelerate green economy investments in EVs, solar panels, and related industries
• Hong Kong Investment Corporation views market volatility and valuation changes as a 'perfect window to buy' for long-term investors, particularly in sustainable aviation fuel and green energy sectors

Market Summary: Iran War Impact and Green Energy Opportunities

Key Developments:

At the Reuters NEXT Asia conference in Singapore on July 9, 2026, senior executives and officials expressed cautious optimism about the Iran war's economic impact, despite ongoing escalations. Rohit Sipahimalani, Chief Investment Officer at Singapore state investor Temasek, stated that "the worst is behind us" regarding energy market disruption, dismissing further volatility as unlikely beyond tail-risk scenarios.

Strategic Chokepoint:

The conflict centers on the Strait of Hormuz, through which approximately 20% of global oil and liquefied natural gas flows. Fresh U.S. military strikes on Iran on Wednesday followed Iranian attacks on Kuwait and Bahrain, coming after assaults on three cargo ships. President Trump declared an interim ceasefire "over."

Regional Vulnerabilities:

Asia faces the greatest exposure to Middle East supply disruptions. Thailand's Vice Finance Minister Santitarn Sathirathai noted the country's energy imports represent roughly 8% of GDP, making it one of Asia's largest net energy importers. The conflict has severely impacted global airlines through soaring jet fuel prices and travel disruptions.

Investment Opportunities:

Despite ongoing uncertainty, institutional investors are pivoting toward green energy. Hong Kong Investment Corporation (HKIC) CEO Clara Chan highlighted continued focus on sustainable investments, including EcoCeres for sustainable aviation fuel. Thai officials see potential growth in electric vehicles, solar panels, and related green industries where the country has existing capabilities.

Market Outlook:

While executives acknowledge the path to resolution remains uncertain and normalization could take months, the consensus suggests peak uncertainty has passed, with energy transmission channels stabilizing.