Asian States Trigger Energy Emergency as Hormuz Risks Add $3.36 Billion to ASEAN's Monthly Import Bill
Updated
Updated · World Economic Forum · May 6
Asian States Trigger Energy Emergency as Hormuz Risks Add $3.36 Billion to ASEAN's Monthly Import Bill
2 articles · Updated · World Economic Forum · May 6
The Philippines declared a national energy emergency after the Middle East war disrupted flows through the Strait of Hormuz, and Thailand, Malaysia, Viet Nam and Indonesia followed with conservation measures.
About 80% of crude moving through Hormuz goes to Asia, while ASEAN gets 55% of its crude from the Middle East, leaving up to 28% of the region's final energy consumption exposed to direct disruption.
ASEAN's oil and gas import costs are running $3.36 billion a month above 2026 budget expectations, pushing up electricity bills, straining government budgets and prompting fuel subsidies, tax cuts and price caps.
India ordered coal plants to run at maximum capacity and is seeking 2.2 million tonnes of annual LPG supply from the US, while South Korea extended fuel tax cuts and eased coal-generation limits.
China and Viet Nam appear better insulated because larger reserves, diversified supply and faster renewable buildouts reduce dependence on Middle Eastern fuels, reinforcing the long-term case for solar, storage and other clean fuels.
As Middle East oil routes falter, is China's renewable dominance creating a new global energy order?
With fuel prices soaring, can Asian governments protect their citizens without bankrupting their economies?
ASEAN at the Epicenter: Economic and Social Fallout from the 2026 Strait of Hormuz Closure and Global Energy Crisis
Overview
The closure of the Strait of Hormuz in late February 2026 triggered a profound global energy crisis, causing unprecedented disruption to international energy markets. This led to widespread panic and economic instability across continents, as energy costs rapidly escalated and urgent calls for intervention from international bodies followed. The immediate impact included a dramatic surge in prices for natural gas and crude oil, with supply routes severely constrained. By mid-March 2026, households and companies in Europe were already facing exceptionally high energy costs, highlighting the swift and far-reaching consequences of this critical maritime disruption.