HONG KONG – The fallout from the US-Israeli war with Iran and the successful closure of the Strait of Hormuz is being felt strongly in Asia, where authorities from New Delhi to Manila are using emergency measures to protect consumers from rising shortages and rising oil prices.
On Friday, Nepalis lined up at gas stations, carrying their empty, red cooking gas drums like the country’s largest oil company. said it will only fill them half with LPG, or liquefied petroleum gas, as it tries to make stocks last longer.
Neighboring India, the world’s second-largest importer of LPG after China, is facing a surge in panic buying among its citizens amid fluctuating international Brent crude oil prices, which as of early Friday were above $100 a barrel.
The unrest highlights how much the Gulf oil-dependent region is being affected by the Iran war, which the International Energy Agency says has caused “the biggest disruption in the history of the world oil market.”
Unlike the US or Europe, which have diverse sources of oil, Asia relies heavily on imports that pass through the Strait of Hormuz, a key shipping lane running south of Iran that carries about a fifth of the world’s oil.
“The ability to refine different oils from different sources is complex and not easily changed in Asia,” Robert Savage, head of market strategy and insights at Bank of New York Mellon, told NBC News on Thursday.
Among the countries most affected are Singapore, Thailand, South Korea, Pakistan and Japan, according to a research note on Thursday from the Eurasia Group, a New York-based firm that analyzes regional risks.
The escalating conflict in the Middle East has caused an energy crisis across the continent, forcing governments to ration oil and seek alternatives.
In India, which has called for emergency powers to direct refineries to increase LPG production, oil companies say they are focused on ensuring the stability of domestic supplies, including essential services such as hospitals.
Although authorities have said the measures are safe and that India has plenty of oil, panic buying threatens to strain domestic resources. “We request everyone not to believe rumors like this or to crowd petrol stations unnecessarily,” Mumbai-based Bharat Petroleum said on Saturday.
Even as India struggles to reassure its people, it is under increasing pressure from its South Asian neighbors.
Bangladesh, Sri Lanka and the Maldives have all requested supplies from New Delhi, Indian Foreign Ministry spokesman Randhir Jaiswal said on Thursday.
Muslim-majority Bangladesh also closed universities and introduced Eid al-Fitr holidays to save electricity and fuel. Concerned consumers flocked to gas stations to fill up their cars.
In Southeast Asia, the Philippines started a four-day work week for government workers, while Vietnam urged its citizens to work from home and reduce the use of cars.
