The war in Iran has led to a global energy crisis. Shipping traffic through the Strait of Hormuz, a major energy chokepoint that handles roughly 20% of the world’s oil, has been largely blocked by Iran since hostilities broke out in late February. This has, at times, caused oil prices to rise above US$100 a barrel.
As the primary customers of Gulf energy, Asian economies are being hit particularly hard by this crisis. According to figures published by the International Energy Agency in 2025, around 80% of the oil and petroleum products and nearly 90% of the LNG that transited the Strait of Hormuz that year were destined for Asia.
Not all countries in Asia are equally vulnerable. Those most exposed to energy market disruption share a set of structural characteristics: heavy reliance on imported fossil fuels, limited fiscal space and constrained energy systems that make it difficult to switch to alternatives quickly.
