Asia's Energy Buffers Deplete Amid Hormuz Closure

Asia's initial buffers against energy disruptions from the ongoing Iran war are depleting rapidly, unleashing a second wave of economic fallout across the region as the closure of the Strait of Hormuz persists with no end in sight.

Governments across Asia rushed to implement emergency measures when the conflict began, tapping strategic reserves, prioritizing household gas over industrial uses like fertilizers and imposing power-saving restrictions that risked slowing business activity. Those steps assumed a brief war would allow swift resumption of oil and gas flows through the strait, a vital chokepoint for energy supplies to the region. Instead, the prolonged standoff has driven Brent crude prices from a budgeted average of $70 per barrel to peaks near $120, straining public finances and forcing tough policy decisions.

Airfares, shipping rates and utility bills are surging, threatening growth in the Asia-Pacific, where the United Nations Development Program estimates the conflict could push 8.8 million people into poverty and inflict $299 billion in economic losses. "The countries with the least resources to respond, or the consumers who can least afford to pay, are the ones...