Federal Reserve official Hammack said contacts say even if the war ends quickly it will still cause lasting disruptions.

Bananas for Japanese retail are ripened in ethylene-filled chambers; ethylene is produced from naphtha, and Japan’s naphtha stocks have dropped about 25% YTD. Shipping disruptions through the Strait of Hormuz, which have cut roughly 20% of global oil supply, are exacerbating the squeeze; Japan’s crude import dependence exceeds 90%. Japan imported about 1 mln tonnes of bananas last year. Eiji Akashi, secretary-general of the Japan Banana Importers Association, said: "Prices may rise, but we are doing everything to avoid supply shortages."

Southeast Asia's manufacturing sector ended a three-month slowdown in May as surging domestic demand offset weaker exports, S&P Global said. The regional manufacturing PMI rose to 51.5 in May from 50.7 in April, staying above the 50 expansion threshold. Robust new orders enabled firms to raise output. Vietnam led the region at 52.8, followed by Thailand at 52.6; the Philippines and Indonesia were also in expansion. Myanmar (49.3) and Malaysia (49.9) remained below the threshold. S&P Global Markets Intelligence said firms increased purchasing but hiring remained cautious, with employment edging down in May.