4 Impacts on Thailand from the prolonged Iran-Israel war include expectations of higher global oil prices and Thai workers in Israel monitoring emergency situations. Israeli tourists may delay travel plans to Thailand.
The ongoing conflict between Israel and Iran (latest data as of March 2026) is affecting Thailand across multiple areas, especially the economy, energy sector, and the safety of Thai workers, as follows.
This impact is the most immediate for Thai people, as the Middle East is a key global oil producer.
Oil and gas prices: The risk of closure of the Strait of Hormuz (which handles 20% of global oil transport) has caused high volatility in global crude oil prices, pressuring retail fuel prices and electricity costs in Thailand to rise.
Energy security: The Ministry of Energy confirmed that Thailand’s oil reserves are sufficient for about 61 days (data from February 2026) and that plans are in place to source from alternative suppliers if the situation worsens.
Stock market and gold: The Thai stock market typically falls in line with global markets amid investor concerns, while gold prices surge as a safe haven asset. This volatility may cause some gold shops to temporarily suspend trading if price swings become too severe.
Baht currency: The US dollar usually strengthens during wartime, leading to a weaker baht. This increases import costs but may boost export revenue figures when measured in baht terms.
Safety: Many Thais work in Israel, mainly in agriculture. The Thai government is monitoring the situation and preparing evacuation plans should conditions deteriorate in high-risk areas.
Remittances: A prolonged conflict forcing workers to return home would affect the income sent back to support families in Thailand.
Shipping: Freight and insurance costs are expected to rise due to rerouted shipping lanes avoiding conflict zones.
Tourism: The number of tourists from the Middle East—a group with strong purchasing power—may decline because of airspace closures or travel difficulties. However, some tourists might shift their travel plans to visit Thailand as a safer alternative.