Iran-Israel War: How Asia is Responding to Soaring Energy Prices & Fuel Shortages
SINGAPORE – The Strait of Hormuz, a critical artery for global energy supplies, remains effectively closed as the conflict between Iran and the United States and Israel enters its fourth week, triggering a surge in oil prices and prompting governments across Asia to implement emergency energy conservation measures. On Monday, President Donald Trump postponed a threatened strike on Iranian power plants, citing “good and productive” peace talks, though Iranian state media denied any negotiations were underway.
The price of crude oil initially swung sharply following Trump’s announcement, jumping 1.9 percent before reversing to fall nearly 1.8 percent to $110 a barrel, according to Bloomberg reports on March 23. Global benchmark Brent crude has surged by more than 50 percent since the U.S. And Israel launched strikes against Iran in late February, raising fears of widespread global inflation. A temporary dip to below $100 a barrel followed Trump’s backing down from his ultimatum, Reuters reported.
The crisis is forcing governments across Asia to respond. In Thailand, Prime Minister Anutin Charnvirakul has ordered civil servants to conserve energy, suspending overseas trips, encouraging the wearing of short-sleeve shirts to work and promoting the employ of stairs over elevators. Civil servants have also been instructed to work from home where possible, with exceptions made for public-facing roles, according to a government spokesperson cited by Reuters on March 10.
The Philippines has implemented a four-day work week for government employees, excluding emergency and frontline services, to reduce fuel consumption, beginning March 9, Reuters reported. Government offices have also been directed to maintain air conditioning temperatures at 24 degrees Celsius or higher.
Vietnam’s government is encouraging citizens to work from home and utilize public transportation to minimize fuel usage. In Malaysia, the government has increased fuel subsidies to shield consumers from rising global prices, but Prime Minister Anwar Ibrahim revealed on March 22 that the national monthly subsidy bill has ballooned from RM700 million (approximately $227 million) to RM3.2 billion in less than a week.
Indonesia is mandating one day of work-from-home for civil servants, with details to be finalized after Idul Fitri. Coordinating Economy Minister Airlangga Hartarto stated on March 21 that public services will continue uninterrupted.
Myanmar is rationing fuel, allowing customers to purchase only once or twice per week using a barcode and QR code system linked to vehicle engine size. Driving restrictions for private vehicles have also been imposed.
South Korea and Japan, both heavily reliant on Middle Eastern oil imports, are facing particular challenges. Japan imports approximately 95 percent of its oil needs from the Gulf, while South Korea imports 70 percent, fueling key export industries like semiconductors, petrochemicals, and automobiles. Seoul is considering restricting vehicle use based on license plate numbers, with a five-day system limiting operation to four days per week, The Korea Herald reported on March 17.
In Japan, the Ministry of Economy, Trade and Industry issued a statement urging citizens not to panic-buy toilet paper, responding to social media reports of stockpiling driven by concerns over the conflict.
Pakistan is taking measures to conserve fuel, with the Pakistan Cricket Board encouraging fans to watch matches on television rather than attend in person during the Pakistan Super League, which runs from March 26 to May 3. The PCB estimated that daily travel by spectators and support staff would place a significant strain on energy resources. Sindh province has also limited wedding guest lists to 200 as part of an “austerity” drive, according to the Pakistani newspaper Dawn on March 20.
India’s government has cautioned against panic buying, assuring the public of sufficient petrol and diesel supplies, while encouraging the use of piped natural gas and electric or induction cooktops over liquefied petroleum gas (LPG). The Statesman reported on March 22 that India is the world’s second-largest importer of LPG, and the hospitality industry is already struggling with supply issues.
Sri Lanka has implemented a shorter work week for state institutions, operating only four days a week starting March 18, with Wednesdays designated as holidays. These measures also apply to schools and universities and are expected to remain in place indefinitely.
Nepal is selling half-filled cooking gas cylinders to curb hoarding and panic buying, despite assurances of sufficient supply.
As of Tuesday, March 24, U.S. Central Command reports having struck more than 9,000 Iranian targets, including over 140 Iranian naval vessels, and flown over 9,000 combat flights since the conflict began. Iranian officials claim to have received proposals from the U.S. Through mediators, which are currently under review. However, Iranian state media continues to assert that Trump “retreated” from his deadline “out of fear of Iran’s response.” The situation remains volatile, with Iranian officials warning of potential attacks on U.S. And Israeli energy infrastructure and the laying of sea mines across the entire Persian Gulf.