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(Bloomberg) — Singapore is nearly doubling its support package to help households and businesses defray higher costs caused by a protracted Middle East conflict.

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The government will offer another S$900 million ($700 million) in assistance especially for lower-income Singaporean households as well as small and medium enterprises according to a statement on Wednesday. That adds to an earlier support package unveiled in April, taking its total to nearly S$2 billion.

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Under the latest package, each Singaporean household will receive S$300 in vouchers in January 2027 that they can use at supermarkets and hawker centers. The government will also offer cash grants for small and medium enterprises and rental support for market stalls and hawker centers.

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The additional stimulus comes amid renewed fighting between US and Iran that’s again disrupted shipments of energy and other commodities which Singapore imports from the Middle East. Inflation ticked up in June with food and transport costs among the key drivers. The central bank has warned it could climb further this month and stay elevated through mid-2027.

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Brent jumped 3.6% on Wednesday to $87.12, extending its gain for July to nearly 20%, though it remains far below the level of $100 reached last Thursday, just before the US and Iran halted attacks on one another.

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“The situation in the Middle East remains volatile, and we continue to feel the effects here at home,” Prime Minister Lawrence Wong said in a Facebook post. “These measures build on the support we have already provided, and I hope they will give Singaporeans greater confidence as we navigate this period of uncertainty together.”

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Wong had warned in June that the city-state has yet to feel the full brunt of the economic fallout from the US-Iran war, particularly in power, food and fertilizer costs. Electricity tariffs, for one, are set to increase by a record 17% starting this month.

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Singapore’s economy has held up better than expected but performance across sectors has been uneven with smaller firms feeling the cost pressures more acutely, Second Finance Minister Jeffrey Siow said.

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