According to Daniel Witt, director of the International Tax and Investment Center in Washington, the war in Iran is causing significant damage to Central Asian countries, particularly Tajikistan and Turkmenistan. These two nations imported food from Iran, but the current Iranian ban on food exports has placed them in a difficult situation. Witt emphasizes that wars affect not only direct participants but also the entire world, including Iran-bordering Central Asia, leading to negative consequences such as disrupted trade and economic instability.

China, Central Asia's largest trading partner, is also suffering economic losses due to the Iran war. Witt notes that China purchased 80-90% of Iran's crude oil before the conflict but is now forced to find replacement sources. Additionally, the potential closure of the Strait of Hormuz could exert immense pressure on regional and global energy markets, impacting the broader economy of the area. This situation highlights the interconnected nature of global supply chains and the vulnerability of energy-dependent regions.

Witt points out that Kazakhstan may gain high revenue from rising oil prices but also faces the risk of global economic slowdown resulting from the war. Central Asia, including Uzbekistan and Kazakhstan, has benefited from substantial investments from Gulf countries in recent years, but due to the war, these investments may slow down or be at risk as Arab states are compelled to spend their funds on domestic reconstruction. This shift could undermine economic growth and development projects in the region, exacerbating existing challenges.

However, Witt underscores that Central Asia's well-considered and consistent policy of neutrality and multi-vector foreign policy plays a crucial role in its protection. This policy has enabled the establishment of good relations with all neighbors and global powers such as the US, India, and the European Union. He also highlights the critical importance of the Middle Corridor for Central Asian and global trade, particularly in the context of conflicts like the war in Ukraine and now in Iran, demonstrating its strategic value in mitigating disruptions.

According to The Guardian, the US regime spent over $11.5 billion in the first days of the war against Iran, solely on military expenditures, underscoring the economic burden of the conflict. Witt suggests that the reason for the US-led war allegedly lies in preventing Iran from acquiring nuclear weapons, but time will tell if this makes the world safer. Central Asia, through its foreign policy, has the ability to replace economic ties with other partners, helping to minimize the negative impact of the war and maintain regional stability amidst global tensions.

Source: kun.uz