Hong Kong’s Chief Executive John Lee expressed significant worry Tuesday about escalating energy costs resulting from ongoing Middle Eastern conflicts involving the United States, Israel and Iran, warning that the Asian financial center will experience economic turbulence alongside the broader region.
During a Tuesday news briefing, Lee outlined government efforts to maintain steady energy access while improving public information sharing regarding supply chains and fuel pricing.
“There are, of course, risks because the conflict is creating disruption to the supply of oil,” Lee stated, noting that officials are actively working to reduce potential impacts and track price changes.
“The government has also been in touch with local airlines and also will be meeting fuel suppliers, petrol fuel suppliers, so as to ensure that they will know their social responsibility,” Lee explained.
The ongoing Middle Eastern turmoil has created worldwide business uncertainty and pushed energy prices upward, particularly affecting aviation companies through increased jet fuel expenses and supply concerns. Many carriers have responded by implementing higher fuel surcharges while others have reduced flight schedules.
Hong Kong’s national airline, Cathay Pacific Airways, has continued its halt of all service between Hong Kong and both Dubai in the United Arab Emirates and Riyadh in Saudi Arabia through March 31.
Despite acknowledging these challenges, Lee suggested the Middle Eastern crisis “highlighted the strengths of Hong Kong” and could generate fresh business prospects for the Chinese territory.
“Investors and businesses looking for diversification at the same time looking for investment security will definitely look to Hong Kong,” he said.
