Asia Grapples with Fuel Crisis as Strait of Hormuz Remains Closed
Governments and businesses across Asia are implementing drastic measures to mitigate the escalating fuel crisis triggered by the closure of the Strait of Hormuz. The disruption to global oil supplies is forcing nations to confront energy shortages and economic challenges, with Southeast Asia, India, South Korea, and Japan particularly vulnerable.
The Strait of Hormuz Closure: A Critical Chokepoint
The Strait of Hormuz, a vital artery for global oil trade, has been effectively shut down amid escalating tensions in the region. Approximately 13 million barrels of oil per day passed through the strait in 2025, representing around 31% of all seaborne crude flows 1. Around 20% of global liquefied natural gas (LNG) exports from the Persian Gulf, primarily from Qatar, are also at risk 1. Qatar halted LNG production on Monday following Iranian drone strikes on its facilities 1.
Regional Responses: From Work Schedules to Price Controls
Several Asian countries are implementing immediate measures to reduce fuel consumption and stabilize markets:
- Southeast Asia: Governments in the Philippines, Thailand, Vietnam, and Myanmar are adjusting work schedules and encouraging remote work. The Philippines has moved to a four-day work week for government offices 2. Thailand and Vietnam are promoting work-from-home arrangements and limiting travel 2. Myanmar has imposed alternating driving days 2.
- Thailand: The Thai Prime Minister has announced a temporary price cap on diesel 2.
- Vietnam: Vietnam is utilizing its fuel price stabilization fund to mitigate price increases 2.
- South Korea: South Korea has introduced petroleum price caps 3.
- India: India’s oil ministry is urging states to implement energy-saving measures 3.
- Philippines: The Philippines is implementing measures to conserve fuel, including adjustments to transportation schedules in Cavite province 3.
Vulnerability and Economic Impact
Analysts identify Thailand, India, South Korea, and the Philippines as particularly vulnerable to higher oil prices due to their high import dependence 1. Malaysia, as an energy exporter, is expected to be a relative beneficiary 1. The closure is expected to negatively impact the GDP of Asian economies 3.
Looking Ahead
The duration of the Strait of Hormuz closure remains uncertain. The situation underscores the critical importance of diversifying energy sources and reducing reliance on vulnerable chokepoints. Continued disruption will likely lead to further economic hardship across Asia and potentially beyond, necessitating ongoing adaptation and international cooperation.