BAKU, Azerbaijan, March 25. The Asian Development Bank (ADB) has announced a new financial support package aimed at helping its developing member countries (DMCs) cushion the economic and financial impact of the ongoing conflict in the Middle East, TurkicWorld reports.
Since no concrete agreement was reached in negotiations between the United States and Iran over the nuclear program, the U.S. and Israel began military airstrikes against Iran on February 28. In response, Iran launched missile and drone attacks on Israel and U.S. military facilities located in countries across the region, starting the same day.
The ongoing conflict has significantly threatened the region’s energy infrastructure and maritime transport. Oil prices have surged on global markets due to heightened security tensions around the Strait of Hormuz, prompting several countries to advise their citizens to leave the region.
ADB President Masato Kanda said the bank would provide "rapid, flexible and scalable" assistance to address both immediate pressures and longer-term risks. This includes fast-disbursing budget support as well as expanded trade and supply chain financing to secure critical imports, including oil.
The bank said it has sufficient resources to protect its existing operations while scaling up emergency assistance, including through its countercyclical lending buffer.
ADB warned that the conflict is already disrupting global trade flows, driving up shipping costs and delivery times, and creating supply risks not only for energy but also for key industrial inputs such as petrochemicals and fertilizers—raising concerns for agriculture and food production across the region.
Rising oil prices, inflationary pressures, and tighter financial conditions are also weighing on economies in Asia and the Pacific, with currencies and capital flows coming under strain. Countries heavily reliant on tourism and remittances are seen as particularly vulnerable.
In response, ADB’s support will focus on two main areas. The first is emergency budget financing for governments facing fiscal pressure, including through its Countercyclical Support Facility to stabilize economies and protect vulnerable populations.
The second component involves expanding the bank’s Trade and Supply Chain Finance Program, which supports private sector imports of essential goods. As part of this effort, ADB will temporarily resume financing for oil imports—an exceptional move reflecting the sharp rise in energy prices and ongoing supply disruptions.
ADB said it has already begun consultations with the most affected countries and will continue coordinating with governments, development partners and the private sector to ensure an effective response.
Founded in 1966, ADB is a leading multilateral development bank with 69 members, supporting sustainable and inclusive growth across Asia and the Pacific.
