Asian countries roll out emergency measures as Hormuz disruption hits global energy flows
Supply fears rise and prices surge after Strait of Hormuz traffic stalls, with Asian governments turning to fuel alternatives, remote work and demand curbs to manage shortages.
Asian governments are introducing emergency measures after ship traffic through the Strait of Hormuz was effectively halted, disrupting a key artery for global energy supplies and driving up prices.
Before the February 28 attacks by the United States and Israel on Iran, around 20 percent of the world’s seaborne oil consumption and liquefied natural gas (LNG) trade passed through the strait, much of it bound for Asia, including China, India, Japan and South Korea.
Traffic has slowed to a near standstill following the joint US-Israeli strikes and Iran’s retaliation, fuelling concerns over supply shortages and sharp price increases.
The Philippines declared a “national energy emergency,” saying its fuel reserves would last about 45 days, while Taiwan said it held roughly 11 days of LNG “safety stock.”
Bangladesh Petroleum Corporation said the country’s fuel reserves would last between 9 and 14 days.
Governments across Asia are moving to curb energy demand and manage shortages, including switching to alternative fuels, introducing remote working, cutting working days and suspending education.
Shift to alternative fuels
As stockpiles dwindle, several countries are turning to lower-quality petroleum products or more polluting alternatives such as coal.
Bangladesh has imported diesel from multiple countries to ease supply constraints, while the Philippines has allowed limited use of lower-grade “Euro II” fuel.
India has expanded its list of energy import partners from 27 to 41 in a bid to diversify supply.
Japan is preparing coordinated releases from strategic reserves, with Prime Minister Sanae Takaichi raising the issue with International Energy Agency (IEA) chief Fatih Birol.
Birol said on March 11 that IEA members had agreed to release 400 million barrels from strategic reserves, the largest such move in the agency’s history.
Demand-cutting measures
Several countries are also revisiting COVID-era policies to reduce energy use.
Pakistan announced a four-day workweek for public offices and a two-week closure of schools and universities.
Bangladesh brought forward university holidays to cut electricity and fuel consumption.
Indonesia is considering hybrid schooling and a one-day-per-week remote working model from April.
Vietnam has urged workplaces to adopt remote working, while Thailand has instructed public sector employees to work from home and suspend overseas travel.
The United States and Israel launched military strikes on Iran on February 28, despite ongoing negotiations between Tehran and Washington.
The regional conflict has continued to escalate since, with US-Israeli attacks so far killing over 1,340 people in Iran, including then-Supreme Leader Ali Khamenei.
Tehran has retaliated with drone and missile strikes targeting Israel, along with Jordan, Iraq, and Gulf countries hosting US military assets, causing casualties and damage to infrastructure while disrupting global markets and aviation.