US-Israeli Offensive Against Iran Disrupts Global Energy Markets, Impacting Asia

Dhaka, Bangladesh — Every day, Shakil Khan navigates the congested streets of Dhaka, providing delivery and transportation services. However, he now spends hours waiting in long lines at gas stations, limited by government fuel purchase caps. Khan is among the tens of millions in Bangladesh experiencing oil and gas shortages as the joint US-Israeli military offensive against Iran disrupts fuel supplies worldwide.

“Because of the oil shortage, my daily income is reduced,” Khan said, as a line of motorcyclists extended behind him in the Bangladeshi capital.

Strait of Hormuz at a Standstill

Thousands of miles away, the Strait of Hormuz, a critical energy artery, has seen activity significantly reduced as missiles and drones traverse the Persian Gulf and Iran increases attacks on ships. This disruption is exacerbating existing global energy concerns.

Regional Impacts and Austerity Measures

Like many Asian nations, Bangladesh relies heavily on imported oil and gas. Concerns about dwindling supplies have prompted governments across the region to implement new policies. Millions are being asked to reduce energy consumption by lowering air conditioning, switching off lights, limiting travel and working from home.

The United States, leading the costly military operation – estimated by one think tank to be burning through $890 million per day – is seeing the most acute impact felt by those least able to afford it.

India, the world’s most populous nation and a major importer of liquefied petroleum gas (LPG), is similarly facing shortages. Ajay Kumar in Gorakhpur, India, joined queues at 3 a.m. To fill his gas cylinder, reporting that many leave empty-handed if they arrive late. Ravi, a resident, told local news agency ANI that people are facing “a lot of difficulties,” with some resorting to cooking on wood stoves. According to analytics firm Kpler, India imports roughly 85% of its LPG and 50% of its liquified natural gas (LNG) from the Middle East. AOL

In response, India’s Ministry of Petroleum and Natural Gas has ordered refineries to increase LPG production for domestic apply and invoked emergency powers to divert fuel from industrial users to households.

Pakistan has announced austerity measures, including school closures and work-from-home policies. Prime Minister Shehbaz Sharif stated that government offices will not be permitted to purchase new furniture or air conditioners.

Global Response and Emergency Reserves

South Korea has imposed its first fuel price cap in nearly 30 years, a significant step for a major global economy. President Lee Jae Myung has also directed a crackdown on oil companies and gas stations to prevent price gouging and is seeking alternative shipping routes that bypass the Strait of Hormuz.

Thailand has ordered government workers to conserve energy by suspending overseas travel and working remotely, urging citizens not to panic buy. The Philippines is implementing a four-day work week for some government employees and setting air conditioning to 24 degrees Celsius (75 degrees Fahrenheit).

In a historic move, member countries of the International Energy Agency (IEA) unanimously agreed to release 400 million barrels of oil – the largest release of emergency stockpiles ever recorded. CNN

UN Warns of Catastrophic Consequences

The United Nations has cautioned that prolonged disruption could have catastrophic consequences, impacting energy markets, maritime transport, and global supply chains. CNN

The escalating conflict is compounding damage to an already fragile global economy, impacted by US-imposed tariffs and trade disruptions.

Bangladesh Receives Aid, Concerns Remain

India is supplying Bangladesh with approximately 5,000 metric tons of diesel via pipeline to help maintain fuel reserves for power generation, transport, and agriculture. However, residents like Mohammad Joynal, queuing for fuel in Dhaka, express concerns about the crisis’s duration and potential economic impact. “If things stay like this, then it will create a massive pressure on the economy,” he said. “We will be in a totally, very bad situation.”