Asia Braces for Oil Shock as Strait of Hormuz Closure Bites

The escalating conflict between the U.S., Israel, and Iran, coupled with the effective closure of the Strait of Hormuz, is sending shockwaves through Asia, prompting emergency measures across the continent to mitigate shortages and soaring oil prices. The situation, which began on February 28, 2026, has created the “largest supply disruption in the history of the global oil market,” according to the International Energy Agency.

Regional Impacts and Emergency Measures

Unlike the United States or Europe, many Asian nations are heavily reliant on oil imports that transit the Strait of Hormuz, a critical shipping route carrying approximately 20% of the world’s oil supply Al Jazeera. This dependence makes the region particularly vulnerable to disruptions.

• Nepal: Authorities are limiting LPG (liquefied petroleum gas) fills to half capacity in an effort to extend existing stocks.
• India: The world’s second-largest importer of LPG after China, is experiencing panic-buying as international Brent crude oil prices surge, exceeding $100 a barrel as of early Friday. The government has invoked emergency powers to maximize domestic LPG production.
• Bangladesh, Sri Lanka, and the Maldives: These nations have requested oil supplies from India.
• Bangladesh: Universities have been closed, and Eid al-Fitr holidays brought forward to conserve electricity and fuel.
• Philippines: A four-day workweek has been implemented for government employees.
• Vietnam: Citizens are being urged to work from home and reduce vehicle usage.

The Strait of Hormuz and Asian Oil Dependence

The Strait of Hormuz, a narrow waterway between the Gulf and the Gulf of Oman, is a vital chokepoint for global energy trade. Shipping is confined to two-mile-wide lanes for inbound and outbound traffic, separated by a two-mile meridian The Guardian. At its narrowest point, the strait is just 21 nautical miles wide.

Robert Savage, head of markets strategy and insight at Bank of New York Mellon, highlighted the challenges faced by Asian countries, stating, “The ability to refine different oils from different places is complicated and not easily shifted in Asia.”

Countries Most Affected

Eurasia Group, a geopolitical risk analysis firm, identified Singapore, Thailand, South Korea, Pakistan, and Japan as being among the most affected countries Al Jazeera. The conflict has triggered an energy frenzy, forcing governments to ration fuel and seek alternative supplies.

US Response and Oil Prices

Although the U.S. Navy has discussed potential escorts for oil tankers, Energy Secretary Chris Wright stated on Thursday that the Navy was not yet prepared for this task. Treasury Secretary Scott Bessent later announced plans for naval escorts, potentially in collaboration with an international coalition, as soon as “militarily possible.”

Oil prices have risen sharply since the start of the conflict, with West Texas Intermediate (WTI) crude oil trading around $93 per barrel on Friday, up from approximately $67 a barrel before the war began on February 28 CNBC.

Ongoing Crisis and Future Outlook

The situation in the Strait of Hormuz remains volatile, with over 1,000 cargo ships, primarily oil and gas tankers, blocked from transit The Guardian. The crisis underscores the strategic importance of the Strait of Hormuz and the vulnerability of Asian economies to disruptions in Middle Eastern oil supplies. The long-term impact will depend on the duration of the conflict and the success of efforts to secure alternative supply routes and stabilize oil prices.