Iran War Triggers Energy Crisis: Daily Life Disrupted Across Asia

Wed Mar 25 2026 10:26:54 GMT+0000 (Coordinated Universal Time)

The ongoing conflict in the Middle East has led to soaring oil prices and significant disruptions in daily life throughout Asia, with countries struggling to cope with fuel shortages and its cascading effects.

In the wake of the Iran war's impact on global oil supplies, Asian countries are facing unprecedented energy challenges. Nationwide, governments are implementing measures such as national holidays, reduced workweeks, and emergency orders. From jeepney drivers in the Philippines to farmers in Sri Lanka, rising fuel costs are crippling livelihoods and igniting public protests.

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, the attacks on energy infrastructure in the region have only served to push prices higher. Arguably, 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 their supplies. Even China - which is thought to have reserves equivalent to three months of imports - is making adjustments, limiting a fuel price hike as citizens are faced with a 20% jump in price.

The war may be thousands of miles away - but everyday life for the people of Asia is being dramatically affected. In the Philippines, a national emergency has been declared to deal with the energy crisis, with jeepney drivers reporting a drastic reduction in daily wages due to rising fuel costs, prompting public protests as they demand government action.

In Thailand, officials have instructed citizens to save energy by adjusting their dress code amidst the crisis, while in Sri Lanka, the government is implementing strict rationing as queues at gas stations are becoming increasingly common.

With no end to the conflict in sight, and the ripple effects leading to widespread discontent, it is clear that the Iranian conflict has far-reaching consequences that extend well beyond its borders.