The war in Iran is straining the supply of energy in Asia as India, Japan feel the strain

The latest phase of Iran’s war is confined to the Strait of Hormuz and its vital energy infrastructure. Already, its effects are spreading thousands of miles away in Asia.

Asia is at the forefront of the energy crisis, with shortages affecting almost every country. About a fifth of the world’s oil flows through the Strait of Hormuz, and 80% goes to Asia, according to the International Energy Agency.

As Iran refuses to open the strait, Asia is trying to reduce disruption and is forced to take measures reminiscent of the actions of the COVID era.

Asia is particularly vulnerable due to its high dependence on foreign countries, weak currencies and large population. And the impact hit homes immediately.

The conflict has affected sectors from aviation and shipping to energy. People are struggling to cook and businesses across the board are struggling as liquefied natural gas imports slow.

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The widespread disruption hit South Asia in particular, which is heavily dependent on Middle Eastern oil. India, which imports about 90 percent of its crude and half of its natural gas from abroad and is the world’s third-largest oil importer and consumer, has been left particularly vulnerable.

Yesterday, President Donald Trump and Indian Prime Minister Narendra Modi spoke on the phone, their first since 28 Feb. In a post on X, Prime Minister Modi emphasized, “Ensuring that the Strait of Hormuz remains open, secure and accessible is of global importance.”

The Strait of Hormuz serves as a transit point for more than 40% of India’s crude oil.

This week, two tankers bound for India passed through the strait. Ships with ties to China, Pakistan and Thailand have also successfully passed through, and several other Asian governments are in talks with Tehran to gain passage.

But most of these imports are expected to be used for non-electrical goods, industries such as fertilizer production, leaving the community in the lurch.

In a new move showing the fragility of the situation, India’s Reliance Industries, which operates the world’s largest refinery, has reportedly bought five million barrels of Iranian oil. The deal marks India’s first such purchase since 2019 and comes days after the US temporarily lifted sanctions.

“All of our kitchens are gas-powered, so they’re all hit,” veteran Indian tour operator AD Singh told FOX Business. “We have been forced to stop offering several items and shorten our menus, we are doing our best given what we have. But people are worried and their livelihoods are at risk. It is not a good feeling,” said the founder and managing director of the Olive Group of restaurants.

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Qatar Energy facilities in Mesaieed Industrial City, south of Doha, on March 4, 2026, after the company announced the shutdown of LNG production following a reported attack by Iran. (Stringer/Getty/Getty Images)

It is the same story in many subcontinents.

Asia’s two most advanced economies have also been hit hard. But while South Asia is feeling it more at the domestic level, Japan and South Korea are facing a different kind of crisis.

The two east Asian countries are reeling from rising import costs, forcing factories to scale back and governments to use emergency reserves.

Japan, which imports 90% of its oil from the region, has begun to exploit strategic sources. South Korea is scaling back evacuation and emergency support measures.

Unlike India, both of these countries have large financial buffers and large amounts of energy, allowing them to mitigate the immediate impact even though structural risks remain high.

Strikes are taking place in many countries, such as India, Bangladesh and the Philippines as frustration grows. Online rumors deepen the frenzy and cause panic buying. In a few countries like India, police have been deployed at petrol stations.

Mount Fuji and the Shinjuku skyline are seen from an observatory in Tokyo, Japan, on Dec. 26, 2023. (Akio Kon/Bloomberg via Getty Images/Getty Images)

As Asia faces this energy crisis, many countries are now turning to coal and wood to meet their gas needs.

Imported cooking appliances are flying off the shelves in LPG-dependent India, and early signs are emerging elsewhere in the region. Power shocks are now being seen at dinner tables as well.

“It takes time to get used to these new ways,” AD Singh told FOX Business.

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Japan and South Korea are accelerating plans to develop nuclear power.

Several Asian countries also pulled gasoline and diesel from domestic reserves, temporarily relaxing fuel standards and boosting domestic production.

Emergency measures are beginning to sweep the region, from severe road closures in Sri Lanka to stricter fuel restrictions in Bangladesh.

People fill up their motorcycles at a gas station in Dhaka, Bangladesh, on March 17, 2026. (Mamunur Rashid/NurPhoto via Getty Images/Getty Images)

The Philippines recently became the first country to declare a national emergency, warning of the “imminent danger of very low energy availability.” The island imports 98% of its oil from the gulf.

Meanwhile, China recently pushed back on planned fuel price hikes in an effort to “reduce the burden” on people.

Some governments are scaling back renovation packages and energy-saving campaigns are flooding social media as high costs bite into household budgets.

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“Any shortage of essential fuels has a negative impact on the entire continent,” Singh told FOX Business. “When it comes to food, the prices of ingredients go up, the cost of labor goes up and the value of the business is affected. And because of the news everywhere, people are distracted.”