Asia is preparing for a second wave of energy-related impacts from the Iran war as governments’ early mitigation measures begin to run short. With conflict disrupting or threatening flows through the Strait of Hormuz—an important route for energy supplies to Asia— countries initially used emergency steps such as reducing overall power use, prioritizing natural gas for household needs, and drawing down energy stockpiles. These decisions involved trade-offs, including slowing business activity to conserve electricity and diverting gas from other uses such as fertilizer production. Early policies assumed disruptions would be brief and that energy flows would resume quickly, allowing shortages to ease. However, those conditions have not returned, and there is no clear end in sight. As a result, the fuel crisis is spreading further through regional economies, with costs rising across sectors, including airfare, shipping rates, and utility bills. Sources also report that the situation increases the risk of hardship for millions of people and could lead to large economic losses across the Asia-Pacific region.
Asia braces for second wave of energy shocks as Iran war disrupts Strait of Hormuz
Asia is preparing for a second wave of energy-related impacts from the Iran war as governments’ early mitigation measures begin to run short. With conflict disrupting or threatening flows through the...
- The Strait of Hormuz disruption is driving energy shocks that affect Asia.
- Early government measures (power conservation, prioritizing household gas use, and drawing down stockpiles) are now running out.
- Policies involved trade-offs, including slower business activity and reduced inputs for fertilizer production.
- Economic impacts broaden as fuel shortages and higher energy costs spread to air travel, shipping, and utilities.
- Sources describe no clear end to the conflict, extending uncertainty and prolonged disruption.
BANGKOK (AP) — Asia’s first defenses against energy shocks from the Iran war are running short and a second wave of impacts is beginning to hit. When the war started, governments scrambled to adapt to the closure of the Strait of Hormuz, a critical artery for energy flowing to Asia. They made difficult trade-offs: saving power at the risk of slowing businesses, prioritizing gas for households at the risk of fertilizer production and dipping into energy stockpiles for temporary relief. READ MORE: Fuel price adjustments for May 12: Gasoline up, diesel down How the Iran War is hurting millions But […]...Keep on reading: Asia braces for a second wave of energy shocks from the Iran war
3 months agoGovernments made difficult trade-offs: saving power at the risk of slowing businesses, prioritising gas for households at the risk of fertiliser production and dipping into energy stockpiles for temporary relief
3 months agoAsia's first defences against energy shocks from the Iran war are running short and a more consequential second wave of impacts is beginning to hit. When the war started, governments scrambled to adapt to the closure of the Strait of Hormuz, a critical artery for energy flowing to Asia. They made difficult trade-offs: saving power at the risk of slowing businesses, prioritising gas for households at the risk of fertiliser production and dipping into energy stockpiles for temporary relief. But these measures were based on the war lasting only a short time, allowing a quick resumption of energy flows. That has not happened. With no clear end in sight, the fuel crisis is now rippling across economies. Airfare costs, shipping rates and utility bills are climbing, jeopardizing economic growth. About 8.8 million people are in danger of being pushed into poverty and the conflict may cause USD 299 billion in economic losses to the Asia-Pacific region, according to the United Nations ...
3 months agoAsia’s initial buffers against the Iran war’s energy shock are fraying as a second wave of impacts hits
3 months ago
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