HONG KONG — The fallout from the U.S.-Israel war with Iran and the de facto closure of the Strait of Hormuz is being felt keenly in Asia, with authorities from New Delhi to Manila taking emergency measures to protect consumers from growing oil shortages and soaring oil prices.
On Friday, people in Nepal lined up at gas stations with empty red cooking gas cylinders as the country’s main oil company announced it would only fill them halfway with liquefied petroleum gas (LPG) to make stocks last longer.
Neighboring India, the world’s second-largest LPG importer after China, is grappling with panic buying among its own citizens following wild swings in international Brent crude oil prices, which were above $100 a barrel as of early Friday morning.
The unrest highlights how the oil-dependent region of the Gulf is being affected by the Iran war. The International Energy Agency says the Iran war has caused “the largest supply disruption in the history of the global oil market.”
Unlike the United States and Europe, which have more diverse oil resources, Asia relies heavily on imports through the Strait of Hormuz, a key shipping route along southern Iran that carries about a fifth of the world’s oil.
“The ability to refine different oils from different locations is complex and cannot be easily transferred in Asia,” Robert Savage, head of market strategy and insights at Bank of New York Mellon, told NBC News on Thursday.
Among the most affected countries are Singapore, Thailand, South Korea, Pakistan and Japan, according to a research note released Thursday by New York-based geopolitical risk analysis firm Eurasia Group.
Escalating conflict in the Middle East has sparked an energy frenzy across the continent, forcing governments to ration fuel and scramble for alternative supplies.
India has invoked emergency powers to direct refineries to maximize LPG production, but oil companies say they are focused on securing domestic supplies, including for essential services such as hospitals.
Authorities say the move is precautionary and India has plenty of oil, but there are fears panic buying could strain domestic resources. “We request everyone not to believe in such rumours, and not to crowd fuel stations unnecessarily,” Mumbai-based Bharat Petroleum told XSaturday.
Even as India struggles to reassure its own citizens, it is facing additional pressure from its South Asian neighbors.
Indian External Affairs Ministry Spokesman Randhir Jaiswal said Thursday that Bangladesh, Sri Lanka and the Maldives have all requested supplies from New Delhi.
Muslim-majority Bangladesh also closed universities and brought forward the Eid al-Fitr holiday to conserve electricity and fuel. Worried consumers rushed to gas stations to fill up their cars.
In Southeast Asia, the Philippines has started allowing government employees to work four days a week, and Vietnam has also urged its citizens to work from home and limit the use of cars.
