Asian analysts on ‘grim’ situation in Middle East driving petrol prices higher

Global energy trade is in turmoil as war around the Persian Gulf chokes off oil and natural gas shipments, causing prices to soar. Asia is the most exposed since it relies heavily on imported fuel, much of it shipped through the Strait of Hormuz, the narrow passageway that carries a fifth of global trade in crude oil and liquified natural gas (LNG). About 13 million barrels of oil per day moved through the corridor in 2025, according to energy consultancy Kpler. That's about a third of all seaborne crude, the unrefined petroleum that is processed into fuels such as gasoline and diesel. Few regions are as exposed to Middle East energy flow disruptions as East Asia. “If the Strait of Hormuz closure is prolonged, then we do expect oil and gas prices to increase across Asia. But this again would depend on the severity of the blockage and, importantly, how long the blockage lasts. We've already seen this price spike happen,” said Amy Kong, energy transition researcher at Zero Carbon Analytics. Japan imported 2.34 million barrels of crude per day in January, about 95% of its total imports that month, according to its Ministry of Economy, Trade and Industry. Japan is often ranked as the world's second-largest LNG importer. South Korea relies nearly entirely on energy imports. The Korea International Trade Association says it gets around 70% of its crude oil and 20% of its LNG from the Middle East. Taiwan also imports nearly all of its LNG. It has been trying to reduce its reliance on the Middle East but still sources about one-third from Qatar, which halted LNG production after attacks on its facilities. In Manila, authorities banned non-essential travel and personal use of government cars to cut fuel use. Japan and South Korea have large energy supply stockpiles. While Taiwan announced that it has enough supplies for March and contingency plans for the future. But analysts say reserves are temporary buffers and energy-intensive industries, like Taiwan's semiconductor industry, remain vulnerable. This article was provided by The Associated Press.