The selloff follows a sharp rise in global oil prices toward $100 a barrel, intensifying pressure on Thailand, which relies on the Middle East for nearly half of its oil and gas imports, according to Krungsri Research.

Data showed foreign investors were net sellers of $823 million in Thai equities in March, while bond outflows reached $705 million, marking the largest combined outflow since October 2024. The reversal came after a brief resurgence in inflows earlier this year, including $1.7 billion in equity purchases in February.

Investor optimism had been buoyed by the election of Prime Minister Anutin Charnvirakul, whose victory raised expectations of political stability and economic reform.

However, the outbreak of the Iran conflict at the end of February triggered a rapid reassessment of risk.Analysts say Thailand faces a more acute challenge than many regional peers due to its economic structure and policy constraints.

The economy had already been struggling, with growth of 2.4% last year and a prolonged period of deflation that prompted a rate cut by the central bank in February.“The risk remains that higher fuel costs hit consumption and disrupt exports and tourism,” said Daniel Tan, a portfolio manager at Grasshopper Asset Management, highlighting concerns about key growth drivers.

Thailand’s heavy reliance on natural gas, which accounts for more than half of its power generation, adds to its exposure. Rising liquefied natural gas imports are expected to further increase costs as energy markets tighten.

The Thai baht has weakened nearly 3% since the conflict began, though it has recovered some ground following a recent ceasefire. Analysts say the currency is acting as a key adjustment mechanism, helping absorb external shocks.

Market participants also point to limited policy flexibility. With public debt nearing the government’s self-imposed ceiling of 70% of gross domestic product, fiscal space is constrained, while monetary policy faces a trade-off between supporting growth and containing inflation.

“There’s a broad consensus among investors that Thailand is in a policy bind,” said Gary Tan of Allspring Global Investments, noting that the central bank has limited room to tighten or ease policy without adverse consequences.

Inflation, which had been contracting earlier this year, is now projected to rise as much as 3.5% depending on how the conflict evolves, marking a sharp shift in the economic outlook.

While a temporary ceasefire has supported a rebound in Thai equities and the baht, analysts caution that prolonged high energy prices could further weigh on growth, consumption and the external balance.

Education Minister A.N.M. Ehsanul Hoque Milon said the proposal is under active review following discussions with Prime Minister Tarique Rahman, as authorities look to reduce fuel consumption while maintaining academic continuity.

The plan would introduce a mixed system combining online and in-person classes, initially for schools, with discussions ongoing on extending it to colleges. Universities may adopt separate arrangements, the minister said.

Officials cited a recent survey indicating that about 55% of students and guardians support a hybrid model, though concerns remain that fully online learning could increase social isolation.

Bangladesh’s move comes as rising global oil prices, driven by instability in the Middle East, strain domestic fuel supplies. The country relies on imports for around 95% of its energy needs, leaving it vulnerable to external shocks.

Authorities have already introduced measures to manage shortages, including fuel rationing, limits on vehicle fuel sales and reduced operating hours for fuel stations amid reports of panic buying and hoarding.

The government is also evaluating additional steps such as expanding remote work for offices and adjusting weekly holidays to reduce overall energy consumption.

Officials said Bangladesh is seeking more than $2.5 billion in external financing to support imports of fuel and liquefied natural gas, as pressure mounts on foreign exchange reserves.

The United States has granted Hungary a one-year exemption from sanctions on Russian oil and gas following Prime Minister Viktor Orban’s meeting with President Donald Trump at the White House. The decision marks a positive diplomatic outcome for both nations and highlights growing cooperation between the U.S. and Hungary in energy and economic policy.

The meeting between Trump and Orban underscored mutual respect and understanding on energy security challenges. Orban emphasized Hungary’s dependence on Russian energy supplies, explaining that a sudden shift could harm both the economy and the livelihoods of Hungarian citizens.

Trump responded by acknowledging the unique geographic constraints Hungary faces as a landlocked nation. “It’s very different for him to get oil and gas from other areas,” Trump said, noting Hungary’s lack of sea access and ports.

The exemption follows Trump’s recent sanctions targeting Russian oil companies Lukoil and Rosneft, which had raised concerns among several European nations. With this decision, Hungary gains a reprieve that allows it to continue sourcing vital energy supplies while beginning to diversify toward U.S. liquefied natural gas (LNG).

According to the White House, Hungary has agreed to purchase $600 million worth of American LNG — a significant step toward balancing energy independence and transatlantic cooperation.

The development reflects Trump’s broader diplomatic approach to European allies, focusing on pragmatic energy partnerships and strong bilateral relations. For Hungary, this marks an opportunity to modernize its energy strategy while maintaining stability in domestic fuel supply and economic growth.

Orban highlighted that the issue was critical for his country, warning that the loss of Russian oil and gas would have deep economic consequences.

The International Monetary Fund reported that Hungary relied on Russia for 74% of its gas and 86% of its oil in 2024. An EU-wide cutoff, the IMF warned, could reduce Hungary’s GDP by over 4%.

The U.S. exemption therefore offers much-needed relief as Budapest seeks to manage its energy transition without economic disruption.

Beyond the immediate sanctions reprieve, Trump and Orban discussed deeper economic cooperation. Orban expressed optimism about entering a “golden age” of U.S.-Hungary relations, with stronger trade, investment, and political understanding. Trump reciprocated by praising Orban’s leadership, describing him as a respected and capable leader who “has not made a mistake on immigration” and is guiding Hungary “properly.”

The personal rapport between the two leaders continues to be a cornerstone of Hungary’s ties with the Trump administration.

Their shared views on immigration policy, national sovereignty, and economic self-reliance have aligned the two nations’ strategic priorities.

Trump, offering his support for Orban’s 2026 re-election bid, emphasized that “Hungary is being led properly, and that’s why he’s going to be very successful.”

Hungary’s relations with the European Union remain tense, especially regarding energy dependence and migration policy. The EU’s top court ruled last year that Hungary must pay a €200 million fine, plus €1 million per day, until it reforms its border and asylum laws.

However, Orban indicated during his meeting with Trump that Budapest would handle its EU disputes independently, reinforcing Hungary’s stance on national sovereignty.

The renewed friendship with Washington is expected to bring tangible benefits. Last month, the U.S. restored Hungary’s full status in its visa waiver program, marking a milestone in bilateral relations.

The Trump administration has also shown willingness to collaborate with Hungary on investment, technology, and defense matters, signaling a deepening partnership.

Energy analysts view the sanctions exemption as a strategic win for both nations. It strengthens U.S. influence in Central Europe while helping Hungary stabilize its energy sector.

Although Hungary has been criticized by EU partners for maintaining Russian energy ties, it has also taken steps toward diversification.

Gas imports from Azerbaijan and Qatar are under consideration, though experts note that Hungary’s refineries are currently optimized for Russian crude.

S&P Global Ratings recently noted that Hungary’s economy is among the most energy-intensive in Europe, making external energy shocks particularly risky.

The exemption provides a crucial buffer, giving Budapest time to implement new energy strategies without jeopardizing its industrial output or fiscal balance.

As Trump continues to redefine U.S. foreign policy toward Europe, the decision to grant Hungary an exemption signals a pragmatic and cooperative stance.

For both nations, it represents a commitment to shared prosperity, energy security, and diplomatic understanding — a partnership built on respect, realism, and strategic balance.

With energy prices driving inflation and burdening households, Takaichi’s policies aim to balance economic stability, environmental responsibility, and national resilience.

A Pro-Nuclear Vision for a Sustainable Future

Takaichi, known for her pragmatic and forward-looking approach, has long been an advocate of nuclear energy and next-generation fusion technology.

Her leadership signals a major push toward reviving Japan’s nuclear fleet, which she views as essential for cutting fuel import costs, reducing carbon emissions, and achieving long-term energy independence.

Following the Fukushima disaster in 2011, Japan’s nuclear sector saw years of hesitation and slow restarts. Of the 54 reactors previously in operation, only 33 remain technically operable, and just 14 have been restarted so far.

Takaichi’s government plans to accelerate the approval process for safe reactors, ensuring compliance with strict safety standards and community engagement.

“We aim to proceed with nuclear restarts while taking concrete steps to gain the necessary understanding of local communities and stakeholders,” said Ryosei Akazawa, Japan’s newly appointed Minister for Economy, Trade, and Industry.

Strengthening Ties with the U.S.

Takaichi’s appointment of Akazawa, a fluent English speaker and experienced negotiator of Japan-U.S. trade agreements, highlights her commitment to strong international cooperation, especially with Washington. Analysts see this as a sign that Japan will continue deepening energy and trade relations with the U.S.

Her government is preparing an energy package to present during U.S. President Donald Trump’s visit to Tokyo next week. The package includes additional liquefied natural gas (LNG) purchases from American suppliers, demonstrating Japan’s willingness to diversify energy sources while maintaining economic diplomacy.

However, Tokyo remains cautious about committing to the $44-billion Alaska LNG project, preferring a balanced approach that avoids overreliance on any single source.

Tackling Inflation Through Energy Reform

Japan spent an estimated 10.7 trillion yen ($71 billion) last year on imported LNG and coal — around 10% of the country’s total import costs. With 60% to 70% of Japan’s electricity generated from imported fossil fuels, energy prices have been a key driver of inflation and public frustration.

By restarting nuclear reactors and investing in domestic technologies, the Takaichi administration hopes to stabilize energy prices, cut emissions, and boost industrial productivity.

Lower electricity costs could ease pressure on both households and small businesses while supporting the competitiveness of Japanese manufacturing and data-driven industries.

Embracing Innovation and Energy Diversification

While nuclear power remains central to her strategy, Takaichi also emphasizes technological innovation and energy diversification.

She supports the development of perovskite solar cells, an emerging Japanese innovation that could redefine solar energy efficiency and become a valuable export technology.

However, she has expressed skepticism toward massive solar and wind projects, especially those dependent on imported Chinese components.

Instead, she aims to promote smaller-scale, domestically developed renewable technologies that align with Japan’s economic and environmental goals.

Industry analysts note that her approach could shift investment focus toward homegrown innovations, such as advanced nuclear and fusion technologies, which could make Japan a leader in clean, reliable energy.

A Balanced and Future-Oriented Energy Policy

Takaichi’s energy agenda reflects a balanced vision—one that acknowledges the importance of renewables but prioritizes energy reliability and national security.

Her stance on nuclear restarts is supported by many experts who argue that Japan cannot meet its decarbonization and affordability goals without restoring its nuclear capacity.

“Prime Minister Takaichi will almost certainly push for a more ambitious nuclear reactor relaunch,” said Henning Gloystein, managing director at Eurasia Group. “This will help bring down power prices while reducing dependence on imported fuels.”

As Japan faces growing energy demands from data centers, industry expansion, and climate goals, the Takaichi administration’s policies mark a turning point.

By combining nuclear innovation, international cooperation, and domestic research, Japan is positioning itself for a sustainable, secure, and economically vibrant energy future.

In the years ahead, Takaichi’s leadership may restore public confidence in nuclear technology and reaffirm Japan’s global role as a clean-energy pioneer—proving that a nation once scarred by disaster can emerge stronger, safer, and more self-reliant through bold, science-driven reform.