Strait of Hormuz Blockade Causes Global Energy Shortages

The escalating war involving Iran has blocked the Strait of Hormuz, a critical chokepoint for global energy supplies, triggering widespread energy shortages and forcing governments worldwide into difficult rationing decisions. The narrow waterway, located off Iran's coast, handles about one-fifth of the world's crude oil and liquefied natural gas trade, with Asia bearing the brunt of the disruptions as it depends heavily on these imports.

In Southeast Asia, nations are implementing urgent conservation measures to stretch limited reserves amid surging oil prices. The Philippines has adopted a four-day workweek for government offices, aiming to reduce energy use by 20 percent, while directing staff to power down computers at lunch and limit air conditioning to 24 degrees Celsius. Vietnam is encouraging remote work to curb fuel demand, and Thailand's prime minister has urged officials to use stairs over elevators. These steps, however, come with economic trade-offs. "Even relatively modest constraints on energy use can create a drag on industrial activity," said Linh Nguyen of the consultancy Control Risks, noting Vietnam's export-driven factories could face higher production...