Asia Faces Energy Crisis as Iran War Disrupts Global Oil Supply

The ongoing US–Israel war on Iran has triggered a growing energy crisis across Asia, the world’s largest oil-importing region. With tensions escalating in the Middle East and shipping disruptions in the Strait of Hormuz, many Asian countries are struggling to secure stable fuel supplies while governments rush to implement emergency measures.

The Strait of Hormuz, a crucial global trade route through which nearly 20% of the world’s oil supply normally passes, has been effectively closed for almost two weeks following attacks and rising military tensions. Iran’s Revolutionary Guards have warned that if the attacks continue, they will block oil exports from the Middle East entirely, further intensifying fears of a prolonged global energy crisis.

Oil prices initially surged to a four-year high, crossing $100 per barrel before slightly easing after the United States released hundreds of millions of barrels from its strategic reserves and hinted at easing some oil sanctions. However, experts warn that the relief could be temporary as the conflict shows no signs of ending soon.

Asia remains particularly vulnerable because of its heavy dependence on Middle Eastern oil. In 2025, the region sourced around 59% of its crude imports from the Middle East, making supply disruptions extremely damaging for national economies and daily life.

Several Asian countries have already begun adopting emergency strategies to manage the situation. Japan is releasing about 80 million barrels of oil from its reserves, equivalent to roughly 45 days of supply. China, which has the world’s largest crude stockpiles, has reportedly received additional oil shipments from Iran to stabilise its reserves.

However, many smaller or more vulnerable economies are facing severe pressure. Bangladesh has started rationing fuel sales, closed universities temporarily, and deployed military forces to protect major oil depots amid panic buying. Myanmar has imposed strict fuel rationing and introduced a system where vehicles can operate only on alternating days depending on their licence plate numbers.

In Pakistan, the government has introduced austerity measures including school closures and a four-day work week to reduce energy consumption and stabilise the economy. Meanwhile, South Korea has capped domestic fuel prices for the first time in nearly three decades to shield consumers from rising costs.

Other countries are also adopting unconventional steps. The Philippines has asked government offices and universities to shift to four-day work weeks and reduce energy consumption, while Vietnam is encouraging work-from-home policies to limit travel and fuel use. Thailand has begun subsidising fuel prices through a government fund in order to protect consumers from sudden price spikes.

Energy experts warn that the situation could worsen if the Strait of Hormuz remains closed for a prolonged period. According to analysts, even if shipping routes reopen soon, oil producers may take time to restore production and global supply chains.

As uncertainty continues, Asian governments, industries, and consumers remain anxious about the future. The conflict has not only destabilised the global energy market but also exposed the deep dependence of many economies on Middle Eastern oil — a vulnerability that could reshape global energy strategies in the coming years.

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