Four impacts on Thailand from the protracted Iran-Israel war: global oil prices are expected to rise, Thai workers in Israel are monitoring emergency situations, and Israeli tourists may delay trips to Thailand.
The latest conflict between Israel and Iran (as of March 2026) affects Thailand across multiple dimensions, especially the economy, energy sector, and the safety of Thai workers, as follows.
This impact is the most immediate for Thai people, since the Middle East is a major global oil producer.
Oil and gas prices: The risk of closure of the Strait of Hormuz (which handles 20% of the world's oil shipments) causes high volatility in global crude oil prices, pressuring higher fuel pump prices and electricity costs in Thailand.
Energy security: The Ministry of Energy confirms Thailand has sufficient oil reserves for about 61 days (as of February 2026) and is preparing alternative supply plans if the situation worsens.
Stock market and gold: The Thai stock market usually declines following global trends amid investor concerns, while gold prices surge as a safe-haven asset. This volatility may temporarily disrupt gold trading in some shops if prices fluctuate excessively.
Thai baht: The US dollar typically strengthens during wars, causing the baht to weaken, which raises import costs but may positively affect export earnings in baht terms.
Safety: A significant number of Thais work in Israel, mostly in agriculture. The Thai government is monitoring the situation and preparing evacuation plans should the conflict intensify in risky areas.
Remittances: If the war prolongs and workers return home, this will affect the income they send to support their families in Thailand.
Shipping: Freight and insurance costs will rise due to rerouted shipping lanes to avoid conflict zones.
Tourists: The number of tourists from the Middle East, a high-spending group, may decrease due to closed airspace or travel difficulties, but some might choose Thailand as an alternative destination to escape unrest.