BANGKOK (AP) — Escalating military conflict around the Persian Gulf has triggered severe disruptions to global energy markets, with oil and natural gas shipments through the critical Strait of Hormuz facing unprecedented challenges. The strategic waterway, which facilitates approximately one-fifth of global crude oil and liquefied natural gas (LNG) trade, has become a flashpoint in regional tensions, sending energy prices soaring worldwide.
Asia emerges as the most vulnerable region due to its heavy dependence on imported energy resources. According to energy consultancy Kpler, approximately 13 million barrels of oil transited through the corridor daily in 2025, representing about one-third of all seaborne crude. The U.S. Energy Information Administration reports that over 80% of LNG shipments through the strait in 2024 were destined for Asian markets.
Since hostilities began, Brent crude prices have surged by 15% to approximately $84 per barrel, reaching their highest level since July 2024. U.S. President Donald Trump announced potential naval protection and risk insurance for shippers, but the ripple effects extend far beyond the immediate region. Wealthier nations are outbidding developing economies for scarce energy cargoes, recreating patterns observed during previous energy shocks.
Zulfikar Yurnaidi of the ASEAN Centre for Energy warned that “the crisis, with the closure of the Hormuz Strait as the latest development, would not only raise oil and gas prices but also grind global economic activity to a halt.”
China and India face particularly significant challenges as the world’s largest and third-largest crude oil importers, respectively. While China maintains substantial strategic petroleum reserves and alternative supply routes—including discounted Iranian, Russian, and Venezuelan oil through independent refiners—the price volatility remains a concern. India’s situation appears more precarious with less than one month of crude reserves, creating potential for rapid deterioration if conflicts persist.
East Asian economies demonstrate varying levels of vulnerability. Japan imports approximately 95% of its crude from the Middle East, while South Korea sources around 70% of its crude oil and 20% of its LNG from the region. Taiwan, despite diversification efforts, remains heavily dependent on Qatari LNG. All three economies maintain energy stockpiles but face challenges in energy-intensive industries.
Southeast Asian nations are implementing emergency measures as developing economies risk being outbid in tightening markets. Singapore has warned of higher energy bills, Manila has restricted non-essential fuel use, and Thailand has suspended petroleum exports while boosting domestic production. The region’s reliance on spot-market LNG creates additional exposure to price volatility and geopolitical instability.
Energy analysts emphasize that current reserves provide only temporary relief, with many nations regretting insufficient investment in renewable energy diversification that could have served as a natural hedge against such disruptions.