Asian countries are scrambling to secure energy supplies as the conflict between the US and Iran disrupts oil shipments through the Strait of Hormuz. The waterway, through which about a fifth of the world's oil passes, has been effectively closed for nearly two weeks, forcing nations across the continent to implement emergency measures.
China, the world's largest crude importer, has reportedly received millions of barrels of oil from Iran since the war began. India has ramped up Russian crude imports after the US issued a sanctions waiver, though fears of cooking fuel shortages have led to reports of hot food disappearing from menus. Japan is releasing about 80 million barrels from its 350-million-barrel stockpile as part of the International Energy Agency's largest-ever release.
But smaller economies are feeling the strain more acutely. South Korea has imposed its first cap on domestic fuel prices in almost three decades, with President Lee Jae Myung noting the country's heavy dependence on Middle Eastern energy imports. Thailand's oil fuel fund is spending tens of millions of dollars daily to keep prices artificially low, while Bangladesh has begun rationing fuel sales and deployed the military at major oil depots.
Myanmar's junta has introduced rationing and banned half of private vehicles from roads on alternating days. Pakistan is implementing austerity measures including school closures and a four-day working week for government offices. The country's prime minister, Shehbaz Sharif, said difficult decisions were needed to stabilise the economy.
Yousef Alshammari, president of the London College of Energy Economics, warned that the longer the strait remains closed, the more likely that emergency stocks will be exhausted, leading to a major global economic crisis. He said the only solution is to reopen the strait and enable navigation to resume.
