On February 28, 2026, Israel and the US began bombarding Iran, prompting Iran to close the Strait of Hormuz — a crucial maritime corridor between Iran and Oman. More than 20 million barrels of oil and major volumes of gas passed through this strait daily, and its closure halted tankers and caused a sharp spike in oil prices.
As a result, Brent oil prices jumped from $67 to $100 a barrel, driving up prices worldwide, with Asia particularly hard hit. Over 80% of the strait's energy exports serviced Asian countries. The hardest-hit economies were Japan, South Korea, China, India, the Philippines, Thailand, and Vietnam.
Japan, which imports 90% of its oil from the region, announced the release of record oil reserves sufficient for 45 days. Gas reserves are limited, threatening electricity rationing. South Korea activated a stabilization fund and is seeking alternative supplies. India simultaneously faces energy, currency, and social crises due to heavy dependence on imports and migrant remittances from the Gulf.
Other Asian countries have introduced anti-crisis measures: Thailand imposed fuel price caps, Vietnam is purchasing oil from alternative sources, and Myanmar and Bangladesh have enforced rationing. China, despite rising prices, continues to receive discounted oil from Iran and Russia.
The crisis is negatively impacting currencies, inflation, and state budgets across the region. Its duration depends on the further course of the conflict and international action. Experts emphasize the need for energy diversification to mitigate similar shocks in the future.
