Asian banks extended more than USD 17 billion to Gulf borrowers in 2025, a record. The Iran conflict froze much of that pipeline after the February escalation. In August 2026, with the conflict still active, selected Gulf financings returned.
Why Asian Banks Are Lending Into a War
Asian banks are not one bloc reassessing Gulf risk together. Japanese lenders call the pullback cyclical. Chinese banks have split into cautious and untouchable. Taiwanese banks have stopped lending entirely.
Vietnam's registered FDI jumps 58% to $38.1 billion, Indonesia and the EU target Q4 signing for their long-delayed trade pact, Thailand and Myanmar commit to a $12 billion trade target, Malaysia's minister pushes local participation in the semiconductor supply chain, and Toyota and Nissan resume Japan production as Honda's shutdown exposes regional auto risk.
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