PUBLISHED ONMarch 19, 2026 1:04 PMBYKhoo Yi-HangBlockade of the Strait of Hormuz amid the ongoing Iran war may have knock-on effects that can lead to an economic downturn or recession, Prime Minister Lawrence Wong told Singapore media during this three-day visit to Japan on Wednesday (March 18).
"We are monitoring the situation closely, because it is dynamic," he said.
He added: "We do not know when it will stop. But quite aside from the military operation, the key question is whether or not the Strait of Hormuz will continue to be blocked, and for how long."
The US had originally stated that its military operation would be over in a matter of weeks.
Operation Epic Fury is now in its third week, PM Wong pointed out, as the US, Israel and Iran continue to battle, causing shipping to stall in the strait.
About 20 per cent of the world's oil pass through the Strait of Hormuz.
Should the Strait continue to be blocked — even if the military operation ceases — there can be "severe consequences" for the global economy, he said.
While the focus has been on resources like oil and gas, food supplies and helium could also be affected.
In particular, 30 per cent of the world's helium goes through the Strait, he said, explaining that the gas is used in MRI machines, semiconductor production and other specialised equipment in hospitals.
"A prolonged blockage of the Strait will have significant implications for the global economy, and may tip the global economy into a tailspin, into a downturn or even a recession," PM Wong warned.
"These are things that we worry about. We do not know if it will happen, but we are monitoring very closely."
PM Wong also highlighted the measures that are currently being rolled out as part of Budget 2026 and that households and businesses will "feel the effects of these measures very soon".
These measures include U-Save rebates and business assistance, he stated.
"If the need arises, then we stand ready to roll out and implement additional measures beyond what have been announced in the budget, and we will have the resources to do so decisively and quickly."
@asiaone Speaking to the media during his official visit to Japan, Prime Minister Lawrence Wong cautioned that impact from the Middle East conflict and restrictions in the Strait of Hormuz will go beyond just oil and energy prices. But he reassured businesses and households in Singapore that the Government "stands ready" to roll out and implement additional measures beyond the Budget, if the need arises. #sgnews #Singapore #Security #MiddleEast #War ♬ original sound - AsiaOne
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Asked about how China will respond to his visit to Japan given the tension between the two countries, PM Wong highlighted that China is aware of this visit.
"With China, the relationship will be more challenging, as you can see now with the tensions that have arisen," he commented.
China has had strained relations with Japan due to longstanding conflicts over wartime history, the Diaoyu or Senkaku island and from a geopolitical disagreement in November last year.
PM Wong stressed that Singapore is on good terms with both China and Japan and that the Republic hopes conversations will continue between the countries as they work towards resolving their differences.
He also shared that China has invited him to the Boao Forum that will take place next week, and that he has accepted the invitation.
PM Wong said: "I am going to Boao to deliver a keynote speech. So we will continue to be friends with both China and Japan. We do not see this as a zero-sum affair. Having good relations with one does not come at the expense of another."
Today's world is complicated by power rivalries that will place more scrutiny on Singapore's actions, the prime minister added.
As he visits one country, the other will notice, which is an inevitability of the geopolitical environment of the present.
He commented: "As far as a small country is concerned, it is helpful to have maximum strategic space for us to operate, and that means cultivating and maintaining good relations with as many powers as possible as we can."
@asiaone Responding to a question from the media on how Singapore can navigate the tensions between China and Japan, Prime Minister Lawrence Wong on Wednesday (March 18) said that while the geopolitical environment is "complicated", Singapore wants to maintain as many good friends as possible. #sgnews #Singapore #ForeignPolicy ♬ original sound - AsiaOne
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khooyihang@asiaone.com
