Singapore Minister Says Worst Case on War Not Fully Priced

Vivian Balakrishnan, Singapore's foreign affairs minister, during the Bloomberg New Economy Forum in Singapore, on Wednesday, Nov. 19, 2025.

The New Economy Forum is being organized by Bloomberg Media Group, a division of Bloomberg LP, the parent company of Bloomberg News. Photo by Lionel Ng /BloombergArticle content(Bloomberg) — Singapore’s top diplomat warned the economic fallout from the war in Iran could worsen and markets have yet to factor in the worst-case scenario.Sign In or Create an AccountEmail AddressContinueor View more offersArticle content“I’ve stopped trying to get into prediction markets,” Foreign Affairs Minister Vivian Balakrishnan told Bloomberg Television’s Avril Hong at an Investment Management Association of Singapore conference on Tuesday, referring to US President Donald Trump’s latest deadline to Tehran.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle content“I’m quite sure the markets are not fully pricing the worst-case scenario,” Balakrishnan said. “How’s that for a note of soberness.”Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentMarkets have been whipsawed by mixed messaging on the war in Iran. Traders were cautious ahead of Trump’s latest Iran deadline expiring on 8 p.m. Eastern Time. Article contentSince the global conflict began in late February, global equities are down less than 6% while oil prices have soared. Even the dollar, a reliable haven in times of geopolitical uncertainty, has weakened since touching a 2026 high late last month.Article contentWhile Balakrishnan — like many in Asia — questioned the need for US military action in Iran, he sees Washington’s main regional rival, China, as not seeking to exploit the situation.Article contentChina has been “stable, careful, deliberate — focusing on its domestic economy and not trying to take advantage of what made things worse on the global stage,” he said, adding he views the moves as “strategically wise actions.”Article contentThe effective closure of the Strait of Hormuz has disrupted a critical artery for oil and gas shipments to Asia, forcing buyers to scramble for alternative supplies and pushing prices higher. The chokepoint handles about a fifth of the world’s LNG supply.Article contentGovernments are already warning of a more challenging outlook as higher import bills feed into inflation and growth. Singapore imports nearly all of its energy and relies on natural gas for more than 90% of its electricity generation, leaving it highly sensitive to swings in global fuel prices and supply disruptions.Article content“We’re trying to be upfront with our people and tell them this is serious, this could get worse,” Balakrishnan said. “We all need seat belts.”Article content—With assistance from Avril Hong, Christine Hah, Richard Henderson and Rieka Rahadiana.Article contentTrending CRA denied taxpayer with multiple health issues the disability tax credit Personal Finance Posthaste: Why Canadians will feel the squeeze of soaring gas prices more than Americans News Diesel-rich Alberta synthetic crude oil triples in four days Oil & Gas Opinion: The world has an energy problem and Canada is the solution Energy Subscriber only. What's behind Chip Wilson's proxy war with Lululemon Subscriber only Retail & Marketing Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. CRA denied taxpayer with multiple health issues the disability tax credit Personal Finance Posthaste: Why Canadians will feel the squeeze of soaring gas prices more than Americans News Diesel-rich Alberta synthetic crude oil triples in four days Oil & Gas Opinion: The world has an energy problem and Canada is the solution Energy Subscriber only. What's behind Chip Wilson's proxy war with Lululemon Subscriber only Retail & Marketing