KATHMANDU, Nepal - Remittance-dependent Experts warn that Nepal may suffer a dizzying series of shocks, particularly in the labor market, as tensions in the Middle East rise in response to Iran's attack on Israel.

According to reports, Tehran has threatened to strike again, with more power, if Israel or the United States retaliate.

Several major airlines have canceled foreign flights due to increasing tensions, hurting Nepalese traveling overseas.

This has raised concerns in Nepal, which relies heavily on remittance earnings, which account for a significant percentage of its economy.

According to the Nepal Rastra Bank, remittance inflows totaled $9.33 billion in the previous fiscal year, setting a new record and increasing the country's foreign exchange reserves to an all-time high.

In the previous fiscal year, 774,976 Nepali workers left the country for foreign jobs.

According to the Nepal Rastra Bank, Qatar is Nepal's biggest source market, with 133,262 workers in the previous fiscal year, followed by the UAE (116,160), Saudi Arabia (112,777), Kuwait (43,508), Oman (5,294), Bahrain (7,690), and Jordan (1,019).

During the previous fiscal year, Israel hosted 1,084 Nepali laborers.

Experts believe a crisis in the Middle East, which employs over half of Nepal's migrant workers, will affect Nepal and recommend developing mechanisms to absorb emerging geopolitical shocks.

"Tensions in the Middle East are not good news for a country like Nepal, whose income is heavily reliant on remittances," said Ganesh Gurung, a migration analyst.

Furthermore, experts think that war in key oil-producing countries drives up inflation.

According to a recent Asian Development Bank assessment, further geopolitical turbulence might disrupt supply chains, raise global prices, and tighten global financial conditions.

This may lead to tightening domestic monetary policy, undermining investment and consumption, and slowing Nepal's weak economic growth.

"As we can see, 1,200 to 1,500 Nepalis leave for Gulf countries every day for jobs. The conflict will prevent many Nepalis from traveling to these countries. It will increase the number of
unemployed persons at home increasing social disturbances," warned Gurung.

According to experts, the remittance drop will lower Nepal's foreign currency reserves, potentially straining the economy.