World Bank: Asia's energy subsidies deplete fiscal buffers amid Iran war shock

The World Bank reports that Asian emerging economies, having responded aggressively to the energy supply crunch from the U.S.-Israeli conflict with Iran, are now exhausting fiscal resources to sustain subsidies. The report, focused on AI-driven growth, flags energy import vulnerability as a key headwind. This signals rising fiscal strain and potential subsidy rollbacks, which could fuel inflation and social unrest across the region.