Asia is scrambling to conserve energy and protect consumers as the Iran war disrupts oil and gas supplies, rattling markets and pushing prices higher, according to the Associated Press. The crisis is hitting the region hardest because much of its imported energy is shipped through the Strait of Hormuz, which has faced heightened strain amid the conflict.
AP reported that since Feb. 28—when attacks on Iran began after Israeli and U.S. strikes and as Iran struck Israel and Gulf Arab neighbors—only about 90 vessels, mostly Indian, Pakistani and Chinese-flagged, have made it through the strait. Michael Williamson of the United Nations Economic and Social Commission for Asia and the Pacific said the exposure is concentrated in Asia rather than elsewhere, adding that disruptions there can spread to broader economic activity. Ramnath Iyer of the U.S.-based Institute for Energy Economics and Financial Analysis warned that the effects could cascade into all economic activities.
Japan, identified by AP as among the most exposed countries, depends on the route for about 93% of its oil imports. Fuel prices have risen, with AP reporting that a liter of regular gasoline sold for about 175 yen ($1.09) on Thursday, up from around 144 yen ($0.91) a month earlier. To cushion the impact, Japan released 15 days of private-sector oil stockpiles and then began drawing on reserves held in national reserves, with Japanese ministries saying the country had roughly 250 days of reserves as of the end of last year.
Still, AP said public concern is mounting, including fears of a repeat of the 1970s oil shock that followed Middle East upheaval and helped trigger shortages and long lines. AP also said calls are growing to accelerate renewable energy use because Japan lags behind other industrialized nations in wind and solar power. Elsewhere in South Korea, the government said it has reserves that could last about seven months, while rising oil prices have led to queues at cheaper gas stations and added strain for delivery workers, truckers and greenhouse farmers.
AP said South Korea’s government response includes lifting a national cap on coal-fired power generation, planning to boost nuclear output, and considering a resumption of Russian crude oil and naphtha imports, which AP described as a key input for plastics manufacturing. In China, AP reported that strategic reserves of oil and gas and an increasing share of renewables—about 30% of its power mix—have helped cushion the immediate impact, even as Chinese consumers face higher travel and fuel costs as airlines raise fares.
AP reported that Vietnam’s production costs are rising in the export-driven industrial sector, with state media describing price increases for inputs in areas such as steel, textiles and footwear. Retailers told AP that suppliers are seeking price increases or even pausing deliveries. The report also said rising diesel prices are pushing up transportation and agriculture costs, and that tourism and passenger travel are under strain, as authorities warned of possible jet fuel shortages in April and urged airlines to review schedules and prepare for possible cuts.
Thailand is also affected, AP reported, with more than half of its electricity generated by LNG and about 40% of that LNG imported from the Middle East. AP said Thailand’s emergency energy plan suspended petroleum exports, ramped up coal output and hydropower generation, and directed government offices to conserve energy. As Thailand looks to the spot market for LNG cargoes, AP said experts warned energy prices would rise as the national subsidy budget is depleted.
In Indonesia, AP said the government has so far managed to hold back raising energy prices, but relief may end after Eid al-Fitr, marking the end of Ramadan. Analysts expect Indonesia will soon face a choice between continuing costly subsidies that shield consumers from higher prices or scaling them back to stay within budget limits—an approach that AP said risks stoking inflation.
AP reported that the Philippines moved to offset higher fuel costs with cash assistance of 5,000 pesos ($83) to about 139,000 tricycle taxi drivers in Manila, with plans to expand the program nationwide. AP also said fuel subsidies will be extended to fishermen and farmers, government offices shifted to a four-day work week to reduce energy consumption, and proposals are under review to bring down biofuel prices.
In Pakistan, AP reported emergency measures to reduce energy demand and manage supply constraints, including ordering schools to shut for two weeks and cutting free fuel allocations for government vehicles by 50% for two months. AP said officials are exploring alternative supply routes, including imports from Saudi Arabia, and that energy shipments are arriving through the Red Sea port of Yanbu. AP added that to save energy, the Pakistan Day parade next week was canceled and will instead be marked with a simple flag-hoisting ceremony.
India, AP reported, has increased domestic production of cooking gas and prioritized distribution to households, a shift that industry groups said is tightening supplies for commercial users such as hotels and restaurants. AP said nearly half of India’s crude oil imports and LNG pass through the strait and that LPG remains the primary cooking fuel for millions of households, making stable supplies critical for daily life and broader economic activity. AP reported that two Indian-flagged LPG-carrying vessels have crossed the strait since the conflict began, easing some pressure.
AP also said Nepal began rationing cooking gas by filling cylinders only to half capacity, about 7.1 kilograms (15 pounds), through its state-run Nepal Oil Corporation, described as the sole distributor of petroleum products. AP reported that gasoline prices were raised by about 10% and authorities urged households to switch to induction cookers to curb gas use.