S&P warns: Credit losses for Asia-Pacific banks could reach $910 billions if the Middle East war continues

Glonghui, April 16th｜International rating agency S&P Global has issued a warning that if the Middle East war continues, credit losses for Asia-Pacific banks could increase significantly over the next two years, with cumulative credit losses reaching $910 billion—$180 billion or 25% more than the baseline scenario. In addition, the agency noted that in a downside scenario, Brent crude oil prices could surge to as high as $200 per barrel, with an average of $185 per barrel in the second quarter and a near $130 per barrel average for the year, which would push up global inflation. The secondary effects would become a major threat to the banking sector, and Brent would not fall back to $100 per barrel until 2027.