Asia is facing a severe energy crisis due to soaring oil prices, driven by the effective closure of the Strait of Hormuz during the Iran-US war, which has disrupted 90% of the region's oil supply.

 

Asia is facing a severe energy crisis due to soaring oil prices, driven by the effective closure of the Strait of Hormuz during the Iran-US war, which has disrupted 90% of the region's oil supply. Governments are responding with fuel subsidies, import restrictions, and energy rationing to mitigate economic disruption, causing stock markets to slump and driving up inflation.

 

Key impacts and measures taken across Asia as of late March 2026:

Strait of Hormuz Blockade: The ongoing conflict has restricted the flow of oil, with only a few ships passing through, causing major disruptions to energy supplies.

National Emergencies: The Philippines has declared a national energy emergency and is considering a four-day work week due to supply shortages, as reported by NPR.

Fuel Export Bans: China has ordered state-owned companies to suspend refined fuel exports to ensure domestic supply.

Price Controls: South Korea has capped fuel prices for the first time in 30 years and is increasing coal/nuclear usage, according to Reuters.

Subsidies and Shortages: Indonesia plans to increase fuel subsidies, while countries like Sri Lanka and Bangladesh are experiencing long queues and panic buying, as reported by ABC News.

Market Impact: Asian stocks have experienced significant declines, with Japan's Nikkei 225 and South Korea's Kospi taking heavy hits.

 

The crisis has significantly increased the cost of living and, according to The Hindu, may severely threaten Asia's overall economic growth.