Washington: Two months into the West Asia conflict, it's easy to lose sight of the fact that Asia had entered 2026 on a strong footing. That resilience is now being tested by the war and its fallout across global energy markets. For Asia - home to the world's largest energy importers, accounting for 40% of global oil consumption, a quarter of natural gas use, and over a third of refining capacity - this shock has far-reaching implications for inflation, growth, and external and fiscal balances.
Much of the flows disrupted by Iran's blockade of the Hormuz Strait, in response to the US blockade of ships going in or out of Iran, are destined for Asia, including about 55% of India's crude imports and 90% of its imports of LPG.
