The Tamesis
Experts say Iran’s escalating war could have the worst impact on Asian countries, as the continent relies on the Middle East for much of its fuel imports.
Asia imports at least 60% of its crude oil from the Middle East, whose exports mainly pass through the Strait of Hormuz. However, much of the world’s access to the vital waterway remains cut off due to a blockade imposed by Iran in response to U.S. and Israeli attacks on the country last month.
The lockdowns have sent shockwaves through global energy markets, but Asian countries have been hardest hit because they have fewer alternatives.
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“We believe Asia will be the most affected region at the moment,” Jean Maynier, president of maritime analytics firm Kpler, told AFP.
Menil said Asia does not have enough energy resources of its own to fill “the energy gap of big countries like China … the Philippines or Indonesia. So this is a real energy crisis.”
Menil noted that the impact of the de facto closure of the Strait of Hormuz has led governments to take extraordinary measures, such as the Philippines which has declared a national energy emergency.
South Korea, Asia’s fourth-largest economy, imposed a fuel price cap for the first time since 1997 to combat energy shortages.
Meanwhile, India, the world’s fastest-growing major economy, has cut industrial gas supplies to protect households from potential shortages.
In Myanmar, long queues for fuel force people to Start using trains and exacerbating the effects of five years of civil war, while Indonesia Published fuel rationing and forcing civil servants to work from home.
South Korea, Thailand, India and the Philippines now Also uses more coal – a major pollutant dubbed the “dirtiest fossil fuel” – to maintain energy security. This remains the case despite ongoing efforts across the continent to reduce reliance on coal.
Huge dependence on the Middle East
“This is really bad for Asia and we are not optimistic if events continue,” Menil said.
Among major Asian countries, Japan and South Korea rely heavily on Middle East crude oil, with about 95% and 70% of their supplies respectively coming from the region.
Similarly, India, the fourth-largest LNG importer, buys about two-thirds of its supplies from Qatar, the United Arab Emirates and Oman, According to Reuters.
Meanwhile, China is the world’s largest importer of LNG, with about a third of its supply coming from the Middle East.
In fact, Asian economies are the most dependent on Middle Eastern oil and gas in the world, according to Reuters.
“No crude oil reaches Asia”
This dependence means most Asian countries are dealing with their worst energy crisis in decades.
There are signs of an easing of hostilities in some Asian countries, with Tehran last week claiming it would allow “non-hostile ships” to pass through the Strait of Hormuz.
At least six Indian tankers have since transported liquefied petroleum gas (LPG) Successfully crossed the waterway Follow the route “determined by the authorities in Tehran.” At least one Pakistani LPG tanker has been allowed to pass through the waterway.
On Saturday, Thai Prime Minister Anutin Charnvirakul also said he had Deal with Iran Allow Thai oil tankers to safely pass through the Strait of Hormuz.
But concerns about Asian oil supplies remain.
Kepler’s Meunier told AFP that “virtually no crude oil is arriving” in Asia and there are no viable alternatives to energy imports from the Middle East, while “stockpiles are being depleted”.
He said that while the attack on Iran was expected, the timing of it and the duration of the ensuing war were surprising.
“What’s surprising is the duration of this event, especially in Asia with the energy crisis we’re facing now.”
Kopler said 17 ships carrying commodities passed through the strait over the weekend, including 12 on Saturday, one of the busiest days for transit since March 1.
As of 1700 GMT on Monday, commercial ships had traversed the waterway just 196 times this month, significantly fewer than before the war.
Of those, 120 were carried by oil tankers and gas carriers, most heading east from the strait.
- AFP, with additional editing and input by Vishakha Saxena
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