Asian economies are proving resilient in the face of the energy shock sparked by the Iran war, though analysts warn of higher and persistent inflation.

Experts feared that Asian economies — which imported 90% of the oil traversing through the Strait of Hormuz before the war — could be devastated by a prolonged disruption to Gulf crude production.

Yet they have been more buoyant than predicted, in part a result of more efficient energy use, and the accelerating electrification of their transport fleets, a Goldman Sachs report said. Still, sustained high energy prices could stoke inflation in the long run: On Tuesday the Bank of Japan kept its policy rate steady while forecasting an inflation spike.