ANKARA

Following the de facto closure of the Strait of Hormuz after US and Israeli attacks on Iran on Feb. 28, Asian countries that rely heavily on this critical transit route for their energy needs are implementing emergency measures to cope with the energy crisis.

Before the attacks, around 20% of the world’s daily seaborne oil consumption and liquefied natural gas (LNG) trade passed through the Strait of Hormuz.

A significant portion of these shipments was destined for Asian countries, particularly China, India, Japan, and South Korea.

Shipping traffic in the Strait has come to a near standstill following joint US-Israeli attacks on Iran and Tehran’s retaliatory actions.

The disruption to maritime trade through the strait has heightened concerns over energy supply and led to sharp price increases.

The Philippines became the first country to declare a “national energy emergency” since the attacks, announcing that its fuel reserves would last for 45 days.

Taiwan’s Ministry of Economic Affairs said it has about 11 days’ worth of LNG “security stock.”

A recent report by the Bangladesh Petroleum Corporation indicated the country’s fuel reserves would last approximately 9 to 14 days.

As tensions escalate in the Middle East, governments across many Asian countries are introducing measures such as using alternative fuel types, remote working, reduced workdays, and suspending education to address energy supply concerns.

Search for alternative fuels

As fuel stocks decline, many Asian countries are turning to lower-quality petroleum products or more polluting alternatives such as coal.

Bangladesh has imported diesel from various countries to ease the energy squeeze caused by the Middle East conflict.

In the Philippines, the government has allowed limited sales of lower-quality, more polluting “Euro 2” fuel products.

India has increased the number of countries from which it imports energy from 27 to 41 in an effort to diversify its supply.

South Korea said it will strictly enforce a mandatory five-day vehicle rotation system for the public sector to respond to possible oil supply disruption amid continued hostilities in the Middle East.

Japanese Prime Minister Sanae Takaichi, during a meeting with International Energy Agency (IEA) head Fatih Birol, called for coordinated efforts to release oil from reserves to combat rising prices.

Birol said on March 11 that IEA member countries had agreed to release 400 million barrels of strategic oil reserves, the largest stock drawdown in the agency’s history.

Remote working measures under consideration

Many Asian countries are also revisiting measures similar to those used during the COVID-19 pandemic, such as remote work and suspending education, to reduce energy demand.

Pakistan’s Prime Minister Shehbaz Sharif announced on March 9 that government offices would operate four days a week and that schools and universities would be closed for two weeks as part of emergency plans.

On March 9, Bangladesh announced to bring forward Eid al-Fitr holidays at universities as part of an emergency to help save electricity and fuel.

Indonesia said it is considering introducing hybrid education in schools starting in April, along with a once-a-week remote work model in workplaces.

Vietnam’s Ministry of Industry and Trade called on businesses to adopt remote working models.

Thailand also instructed public sector employees to work from home and suspend overseas travel.

Regional developments

The regional escalation in the Middle East has continued since the US and Israel launched a joint offensive against Iran on Feb. 28, so far killing more than 1,300 people, including then-Supreme Leader Ali Khamenei.

Iran has retaliated with repeated drone and missile strikes targeting Israel and Gulf countries hosting US military assets.

The Strait of Hormuz has also been effectively throttled since early March. Around 20 million barrels of oil normally pass through it daily, and its disruption has driven up shipping costs and pushed global oil prices higher.

*Writing by Asiye Latife Yilmaz from Istanbul