The effective closure of the Strait of Hormuz after the US and Israel began their war with Iran in late February has sent shockwaves across the globe. Oil prices have soared, and stock markets have wobbled as the world waits to see when Iran will allow the key waterway—through which about 20% of all oil passes—to reopen.
At the moment, only a handful of ships make it through the strait each day. Meanwhile, attacks on energy infrastructure in the region have only served to push prices higher. Nowhere has felt it more than Asia: nearly 90% of the oil and gas passing through the strait is bound for Asian countries. And already, the strain is being felt.
Governments have ordered employees to work from home, cut the working week, declared national holidays, and closed universities early in order to conserve supplies. Even China, believed to have reserves equivalent to three months of imports, is limiting a fuel price hike as its citizens face a 20% jump in price.
The Philippines declared a national emergency due to the conflict, which has drastically influenced energy availability. Jeepney drivers, facing plummeting wages due to rising costs, exemplify the struggles of many who rely on fuel for their livelihoods.
In Thailand, energy conservation measures have led to directives suggesting residents keep their air conditioning at higher temperatures, while news presenters have donned less formal clothing on air as a way to promote energy saving. In Sri Lanka, despite having funds, residents face scarcity of fuel, leading to drastic measures like fuel rationing.
Meanwhile, in India, where a significant portion of liquefied petroleum gas is imported, the closure of the strait has resulted in cooking gas shortages, affecting both households and small businesses like restaurants. The situation remains dynamic as Asia grapples with the impact of a conflict occurring thousands of miles away, demonstrating the deep interconnections of global energy supply and daily life.
At the moment, only a handful of ships make it through the strait each day. Meanwhile, attacks on energy infrastructure in the region have only served to push prices higher. Nowhere has felt it more than Asia: nearly 90% of the oil and gas passing through the strait is bound for Asian countries. And already, the strain is being felt.
Governments have ordered employees to work from home, cut the working week, declared national holidays, and closed universities early in order to conserve supplies. Even China, believed to have reserves equivalent to three months of imports, is limiting a fuel price hike as its citizens face a 20% jump in price.
The Philippines declared a national emergency due to the conflict, which has drastically influenced energy availability. Jeepney drivers, facing plummeting wages due to rising costs, exemplify the struggles of many who rely on fuel for their livelihoods.
In Thailand, energy conservation measures have led to directives suggesting residents keep their air conditioning at higher temperatures, while news presenters have donned less formal clothing on air as a way to promote energy saving. In Sri Lanka, despite having funds, residents face scarcity of fuel, leading to drastic measures like fuel rationing.
Meanwhile, in India, where a significant portion of liquefied petroleum gas is imported, the closure of the strait has resulted in cooking gas shortages, affecting both households and small businesses like restaurants. The situation remains dynamic as Asia grapples with the impact of a conflict occurring thousands of miles away, demonstrating the deep interconnections of global energy supply and daily life.
