The Strait of Hormuz carries about one-fifth of global oil supplies, and the conflict has led to its effective closure, according to multiple reports. Iran has attacked commercial ships in the Strait of Hormuz, major media outlets report. Oil prices have soared since the conflict began, with oil trading at over $100 a barrel, more than a third higher, according to major media.
Severe fuel price increases and shortages are hitting Asia-Pacific countries hard. In Vietnam, diesel prices have gone up by nearly 60% since last month, major media reports. In the US, average petrol prices are up 23% on a month ago, while diesel prices are up by a third, according to major media.
In the UK, diesel prices are up 9%, major media reports. In Australia, dozens of service stations and even some entire towns have reportedly run dry, according to major media. Australian carrier Qantas has been forced to reroute its Perth to London flight, now requiring a refuelling stop in Singapore, adding three hours to the journey, major media reports.
Governments are intervening to cap fuel prices and ration supplies. In France, TotalEnergies will cap the price of petrol and diesel at its service stations from Friday until the end of the month, major media reports. In Bangladesh, fuel sales have been rationed since Sunday, and there have been riots due to fuel rationing, with the military deployed, according to major media.
Taiwan has activated an emergency mechanism to absorb 60% of the price increase for petrol and diesel, major media reports. South Korea has announced a system to limit prices for petroleum products, according to major media. Thailand has limited the diesel price for 15 days to about 81 cents per liter, major media reports.
Asian countries are heavily dependent on Middle Eastern oil, and LNG disruptions are exacerbating the crisis. Nearly 90% of all oil and gas that passed through the Strait of Hormuz last year was bound for Asia, major media reports. The Philippines gets around 95% of its crude oil from the Middle East, according to major media.
Almost 30 billion cubic meters of LNG has been removed from global supply chains, with more than 80% missing in the Indo-Pacific region, according to The Guardian - Main UK. Countries are shifting back to coal power generation across Asia to compensate. India relies on coal for nearly 75% of its power generation, according to multiple reports.
South Korea has delayed the shutdown of coal-fired power plants and lifted caps on electricity from coal, multiple reports indicate. Thailand has increased output at the country's largest coal-fired plant, according to multiple reports. The Philippines plans to boost operations of its coal-fired power plants, major media reports.
India has asked its coal plants to run at maximum capacity and avoid planned outages, according to major media. Bangladesh increased coal-fired power generation and coal-fired power imports in March, multiple reports indicate. Japan has lifted all restrictions for coal-fired power plants, major media reports.
International and regional emergency responses are underway. The International Energy Agency (IEA) has advised member countries to take emergency measures to curb oil demand, multiple reports indicate. The IEA ordered the largest release of government oil reserves in its history last week, according to multiple reports.
Social and economic disruptions are mounting, with school closures, work changes, and conservation measures. In Bangladesh, universities closed early, bringing forward the Eid al-Fitr holidays to conserve energy, major media reports. In Pakistan, schools have been closed for two weeks and universities have moved lessons online, according to major media.
In Pakistan, fuel allowances for government departments have been slashed by 50%, public offices have moved to a four-day work week, and half of government employees will move to remote working, major media reports. In the Philippines, public working hours have been slashed by one day, according to major media. Thailand has ordered that air conditioning temperatures in public buildings must not be below 26 degrees Celsius, multiple reports indicate.
Vietnam has asked businesses to encourage employees to work from home, major media reports. India is prioritizing LNG distribution amid the crisis. India is the world's fourth-largest buyer of LNG, major media reports.
New regulations in India aim to ensure fair distribution and continuous availability of LNG for priority sectors, according to major media. In India, households and the transport sector are prioritized for LNG supply, major media reports. Fertilizer factories and the tea industry are also prioritized for LNG supply, subject to operational availability, according to major media.
The environmental impact is significant, with increased carbon emissions from the conflict and coal use. The first 14 days after the US and Israel attacked Iran generated over 5 million tons of carbon dioxide emissions, major media reports. 4 million tons of carbon dioxide, according to major media.
88 million tons of carbon dioxide emissions, major media reports. Food import vulnerabilities in Southeast Asia are exposed. Singapore imports 90% of its food, major media reports.
All of Indonesia's wheat comes from outside the country, according to major media. China's electric vehicle adoption offers a contrasting energy trend. One-third of all new cars sold in China are electric, major media reports.
Malaysia is likely to benefit from higher oil prices in the long term, as the state oil and gas company accounts for 10-15% of the state budget, according to multiple reports.