Israel-US attack on Iran will affect energy prices & countries far away like S'pore: SM Lee

The Israel-U.S. attack on Iran is going to affect energy prices, even in countries far from the Middle East, such as Singapore, Senior Minister Lee Hsien Loong said on Feb. 28.

SM Lee delivered his speech at a Chinese New Year dinner at Teck Ghee Community Club, adding that it is "very hard" to tell how the war will end.

He also warned of the "overall climate of uncertainty" as businesses and companies will "find it impossible" to predict situations and plan ahead.

"Very hard to tell how the war will end"

SM Lee said that "things are far from settled" in terms of security and defence, highlighting that tensions between the U.S. and Iran "have been building up".

He noted that the U.S. had "assembled" military forces in the Middle East, and attacked Iran together with Israel on Feb. 28.

"The war has begun," he said, adding that Iran has retaliated against Middle East countries, including Israel, Doha, Kuwait, Bahrain, and the United Arab Emirates (UAE).

He noted that the attack will affect energy prices, including those in countries far away like Singapore.

"You can see how the war starts, but it is very hard to tell how the war will end," SM Lee said.

He added that the "overall climate of uncertainty" resulting from the current situation in the Middle East will "dampen the global climate for trade and investment" as businesses and companies will "find it impossible" to predict situations and plan ahead.

"And this is going to affect us too, as a small and open economy reliant on global trade and investments," SM Lee reiterated.

Government support measures

Against this backdrop, SM Lee said that the government "will do its part" to help businesses and workers in Singapore.

"We cannot tell what will happen in the world, we cannot help what will happen in the world. But we can make sure that within Singapore, we prepare ourselves, and make the best of whatever situation comes and meet us."

Referring to Prime Minister Lawrence Wong's Budget 2025 announcement on measures to help Singaporeans, he said that the government is "putting in a lot of resources" to strengthen the economy, such as in the area of Artificial Intelligence (AI).

SM Lee urged Singaporeans and businesses alike to upgrade and adapt in the face of global instability, including by acquiring new skills and transforming business models.

"And I hope everyone makes full use of the support you are getting through our various programmes, work together to take advantage of these opportunities, overcome the challenges ahead of us, and build a bright future for ourselves," he said.

Top photos via Lee Hsien Loong/YouTube & AFP