Asia Faces Energy Crisis as Iran Disrupts Strait of Hormuz

A closure of the Strait of Hormuz, a critical waterway for global oil and gas supplies, is triggering a severe energy crisis across Asia. The disruption, stemming from escalating tensions with Iran, is straining energy reserves and driving up prices, impacting economies and daily life throughout the region.

The Strait of Hormuz: A Vital Energy Lifeline

The Strait of Hormuz is a narrow sea passage connecting the Persian Gulf with the Gulf of Oman and the Arabian Sea. In 2025, approximately 20 million barrels per day (mb/d) of crude oil and oil products – roughly a quarter of the world’s seaborne oil trade – transited this crucial chokepoint. Around 80% of these shipments were destined for Asian nations .

Southeast Asia Particularly Vulnerable

Southeast Asia is among the regions hardest hit, with many nations heavily reliant on oil and gas imports from the Middle East. According to Professor Indra Overland, head of energy research at the Norwegian Institute of International Affairs, Vietnam has 30 to 45 days of oil reserves, Thailand has about 61 days, and Singapore has 20 to 50 days . The Philippines imports 90% of its oil from the Middle East and has declared a national energy emergency, estimating only about two months of gasoline and diesel reserves for its population of over 117 million .

Economic Impacts and Government Responses

The disruption has led to surging oil prices. Brent crude futures rose to $107.49 per barrel and US West Texas Intermediate crude futures reached $105.40 per barrel in early April 2026 . Asian stock markets have also experienced declines as a result of the instability.

Governments across the region are implementing various measures to mitigate the crisis. The Philippines is considering cutting fuel taxes, providing subsidies for low-income citizens, and even implementing a four-day operate week. Manila is also seeking assistance from Russia and China . Other responses include calls for reduced energy consumption, such as driving less and working from home .

Broader Regional Concerns

Singapore’s Foreign Affairs Minister Vivian Balakrishnan has described the situation as an “Asian crisis,” emphasizing the disproportionate impact on the continent’s economies . Indonesia and Malaysia are comparatively better positioned due to their own substantial oil and natural gas production.

Looking Ahead

The duration and severity of the energy crisis remain uncertain, dependent on the resolution of tensions with Iran and the restoration of free passage through the Strait of Hormuz. The situation underscores the vulnerability of Asian economies to disruptions in Middle Eastern energy supplies and highlights the need for diversification of energy sources and increased energy security measures.