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Letter from Nikkei Asia's editor: Israel-Iran war highlights Asia's vulnerability
Hello, everyone. I'm writing this week's newsletter from Hong Kong, where I attended the annual awards ceremony hosted by the Society of Publishers in Asia last night. I'm proud to share that our series, "China's tech industry fights back," received the award for excellence in technology reporting, and our in-depth analysis of last year's runway collision at Japan's Haneda Airport received an honorable mention for journalistic innovation. We are incredibly honored to have won in the global category -- competing alongside major international media outlets -- for the third consecutive year. A heartfelt thank you to our readers for your continued support.
As readers of this newsletter are aware, Hong Kong is one of the key maritime hubs along Asia's sea lanes. In times of international crisis, strategic points along these routes -- such as this beautiful city, with its skyscraper-lined waterfront -- draw global attention. This week, one of the most vital of those routes, the Strait of Hormuz in the Middle East, has fallen into a critical situation.
Following U.S. strikes on Iran's nuclear facilities, Tehran hinted at the possibility of closing the strait. In response, Nikkei Asia quickly assessed the potential fallout. According to our analysis, Asia would be the region most severely impacted if the strait were to be shut down.
Roughly 80% of the crude oil transported through the Strait of Hormuz -- which narrows to just over 30 kilometers at its tightest point -- is destined for Asia. Major economies like China and India are expected to face particularly severe consequences in the event of a disruption.
Crude oil prices surged following the U.S. strike on Iran's nuclear facilities. However, just a few days later, President Donald Trump unilaterally declared a ceasefire between Israel and Iran via Truth Social. His statement sent oil prices tumbling and Asian stocks soaring. A shaky ceasefire has since taken hold.
Whether this marks the end of the latest crisis remains uncertain, but one thing is clear: Any conflict that spreads globally will have a profound impact on Asia. As I've emphasized many times in this newsletter, Nikkei Asia is committed to analyzing and explaining global events through an Asian lens. For the latest updates and in-depth coverage, please visit the Nikkei Asia website and app.
Webinar: Trading Asia Live
Lastly from me, Nikkei Asia will host a free webinar just a day before Trump's 90-day pause on tariffs ends. Here are the details for "Trading Asia Live: What to expect from markets when the Trump tariffs kick in."
Date and Time: Tuesday, July 8
New Delhi | 9:30 am - 10:30 amBangkok | 11:00 am - 12:00 pmSingapore | 12:00 pm - 1:00 pmTokyo | 1:00 pm - 2:00 pm
Our market editor and reporters will discuss how experts are calibrating the expected economic impacts of Trump's tariffs and how investors and traders plan to navigate the renewed tariff war. Sign up here, where you can also submit questions.
My suggested reads
1. Singapore has begun a bold expansion of its main gateway, Changi Airport, to stay competitive as a regional economic hub. Terminal 5, scheduled to open in the mid-2030s, is projected to boost total airport throughput by 50% to over 140 million passengers annually. Read our comprehensive report -- packed with dynamic graphics and images -- to learn more about this ambitious project.
2. Japan is attempting to get back into the cutting-edge chipmaking game, but one part of the country's supply chain has never lost its edge: little-known companies with a near total control of key components or materials. A prime example: Nitto Boseki, the textile maker turned AI enabler.
3. Japan may seem far removed from America's fentanyl crisis, but a Nikkei investigation has revealed evidence of a hidden connection to the flow of these powerful synthetic opioids. The findings raise questions about Japan's role in a shadowy trade that has ratcheted up tensions between the U.S. and China.
4. South Korean mega boy band BTS is set to reunite now that all members have completed their military service, sparking hopes of a K-pop revival amid falling album sales and intensifying global competition. Our photo- and graphics-rich deep dive explores what their comeback could mean for both the group and the future of K-pop.
5. In recent years, English education in Japan has accelerated, driven largely by pressure from the business community to cultivate globally active talent. However, with rapid advancements in AI, a new question has emerged: Is learning English even necessary anymore? NIKKEI Film explores the future of English education in the age of AI.
Through the lens
This week's top photo pick : Cambodians carrying their belongings prepare to cross the border to Cambodia during a temporary opening that enabled stranded Thais to come the other way. The Ban Khlong Luk border checkpoint in Aranyaprathet district, Sa Kaeo province, and other crossing points were closed by the Thai military following a border spat. This was presented by the Thai army as part of a broader crackdown on multiple transnational scam centers operating along the border. (Photo by Rungroj Yongrait/EPA/Jiji)
Check out more of our photo coverage here
Wishing you a wonderful weekend!
Akito Tanaka
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