The closed Strait of Hormuz has triggered a sharp energy shock across Asia. Last year, nearly 90% of the oil and gas transported through the strait was destined for the region. But with the waterway shut for nearly two months, Asian policymakers now have to urgently rethink their energy strategies.
The answer, for many countries, is coal. The Philippines, Japan, Thailand and South Korea, among others, have turned to coal as a stopgap measure to stabilize their power supply amid volatility in oil and natural gas markets. Coal exporters like Indonesia are also ramping up their stockpiles as the Middle East conflict triggers a price surge.
