The Hong Kong government is prepared for greater global market volatility and risks, as well as increased trade costs and shifting commodity prices, caused by the joint US–Israel attack against Iran, according to the city’s finance chief.
Shortly after Iranian state media confirmed that supreme leader Ayatollah Ali Khamenei was killed in the attacks, Financial Secretary Paul Chan Mo-po said the conflict created “significant global uncertainty” in the world economy.
“I expect increased volatility in financial markets, with faster and less predictable capital flows. Capital may come [from different places] to Hong Kong to seek a safe haven,” he said in a televised interview.
“The government is prepared for that and will manage financial risks with caution.”
Chan expected that the conflict would have a short-term impact on oil and gold prices, as well as on international trade and transport costs and time.
Hong Kong did not have many direct trade and investments with Iran, but the government would continue risk management amid the evolving situation, he added.
Despite being hit by US sanctions, Iran remains one of the world’s major oil producers, exporting around 1.9 million barrels per day, according to the International Energy Agency.
