Why the Energy Crisis Is Impacting Asia

Why It Matters

Asia’s dependence on Hormuz makes regional energy security highly sensitive to geopolitical tensions, affecting prices, trade balances, and long‑term strategic planning.

Key Takeaways

• Asia depends heavily on Strait of Hormuz oil shipments.
• 80% of oil transiting Hormuz destined for Asian markets.
• Nearly 90% of LNG through Hormuz flows to Asia.
• Southeast Asian nations face heightened vulnerability as Strait constraints persist.
• Europe‑to‑Asia cargo rerouting benefits wealthier buyers, not all.

Summary

The video explains that Asia’s exposure to the ongoing energy crisis is amplified by its reliance on maritime routes through the Strait of Hormuz, the world’s most critical chokepoint for oil and liquefied natural gas (LNG).

Roughly 80 % of oil and oil products transiting the strait in 2025 are bound for Asian markets, while almost 90 % of LNG shipments follow the same path. Countries such as Malaysia receive about half of their oil imports via the strait, and China tops the list of LNG recipients. Limited pipeline alternatives leave the region especially vulnerable to any disruption.

The presenter cites specific examples: Singapore, Thailand, Vietnam and the Philippines depend heavily on Hormuz‑borne LNG, and South Asian economies see a disproportionate share of imports routed through the waterway. In response, some traders have redirected cargoes from Europe to Asia to capture higher price premiums, but only financially robust nations can afford the premium.

The continued constraint of the Strait of Hormuz could force Asian importers to seek costlier, less reliable supply options, heightening price volatility and prompting strategic shifts toward diversification, stockpiling, or accelerated investment in alternative energy sources.

Original Description

Four-day workweeks. Designated driving days. Fewer business trips. Across Southeast Asia, governments have been moving quickly to adopt measures that conserve fuel – highlighting the region’s exposure to the energy crisis caused by the near closure of the Strait of Hormuz.

In this episode, Sue-Ern Tan, Head of the IEA’s Regional Cooperation Centre in Singapore, explains why countries in Southeast Asia are among the hardest hit by current energy supply disruptions. She discusses how rising prices and fuel shortages are already affecting daily life – and the steps governments are taking to help shield consumers from the worst impacts.