Thousands of miles from the fighting, the war in the Middle East has set off an energy crisis across Asia, where most countries rely on the Persian Gulf for fuel supplies.
Three weeks into the expanding conflict, shipping through the Strait of Hormuz is reportedly allowed only with Iranian permission. That chokepoint is vital for global oil flows, and disruptions there are already reverberating across the region.
As drones and missiles hit oil and gas infrastructure in the Middle East, Asian governments are feeling the impact. Japan and South Korea have tapped strategic reserves, while developing countries such as Vietnam, Cambodia, Thailand and the Philippines are rationing fuel and closing gas stations to cope with shortages.
In India, protests have erupted over soaring prices and acute scarcity. China, with larger stockpiles and pipeline links, has moved to ban exports of jet fuel, diesel and fertilizer, a measure that is prompting ripple effects elsewhere.
Self-governed Taiwan, which produces the world’s high-end semiconductors but imports about 97% of its energy, is particularly worried about a prolonged conflict. Taiwan’s deputy foreign minister Chen Ming-chi warned that rising LNG and oil prices will hurt the economy and said the government is urgently seeking alternative suppliers and diversification. When asked about buying more liquefied natural gas from the United States, he replied it was a definite option as part of that diversification push.
If the disruption persists, it could be a boon for U.S. energy firms—especially natural gas producers—as Asian governments, including Taiwan’s, look to secure long-term contracts and shore up supplies. The crisis underscores how dependent the region remains on Gulf exports and the strategic need to diversify energy sources.