Asian nations feel oil price pinch as Middle East conflict pushes crude past $100
2026-03-09 - 10:02
Asian nations are feeling the economic pinch as the US-Israel war on Iran pushed global crude prices past $100 per barrel, forcing governments across the continent to implement emergency measures ranging from school closures to fuel price caps. The price surge, driven by escalating Middle East tensions and the closure of the Strait of Hormuz, threatens to destabilize economies heavily dependent on imported energy. India, China rely on reserves In India, authorities say fuel prices remain unchanged for now as the government relies on diversified supply sources and strategic reserves. Officials say the country has accumulated petroleum reserves and commercial stocks sufficient for roughly 50 to 74 days of consumption, providing a buffer against supply disruptions. China, the world's largest oil importer, is also closely watching developments. According to the Atlantic Council, Beijing has been building crude stockpiles and has greater domestic oil production than many East Asian economies, giving it some insulation if supplies from the Middle East are disrupted. In Australia, the government has urged the public not to panic buy amid reports that farmers are stockpiling diesel, with Energy Minister Chris Bowen saying the country still holds strong reserves. Emergency measures across South Asia In Pakistan, Prime Minister Shehbaz Sharif is preparing an austerity plan that may include distance learning and work-from-home arrangements after authorities announced a record 55-rupee (20-cent) per liter increase in petrol prices. Bangladesh has ordered the temporary closure of educational institutions nationwide to conserve electricity and fuel, with officials saying the step will reduce power consumption and transport-related energy use. In Malaysia, Prime Minister Anwar Ibrahim said his government would strive to keep petrol prices at 1.99 ringgit (44 cents) per liter. "We will do our best to ensure the price of RON95 remains at 1.99 ringgit so that the rakyat are not burdened," he said. Indonesia, which imports about a quarter of its crude through the Strait of Hormuz, has begun shifting some oil purchases to the United States and other suppliers to reduce reliance on the Gulf route. East Asian market turmoil South Korean President Lee Jae Myung on Monday called for authorities to swiftly introduce a cap on local fuel prices to cope with surging gas prices and volatility in foreign exchange markets. The order came as the South Korean won fell to a 17-year low against the US dollar, closing at 1,495.5 won per dollar, the weakest since March 2009. In Japan, the Nikkei index ended down more than 2,800 points, marking its third-largest single-day drop in history, as investors reacted to rising energy costs and geopolitical uncertainty. In Taiwan, Economy Minister Kung Ming-hsin said the short-term impact on natural gas supplies is expected to be minimal, noting that 20 LNG shipments are already arranged for March and April. Conflict and casualties Regional tensions have escalated since the US and Israel launched a large-scale attack on Iran on Feb. 28, killing more than 1,250 people, including Supreme Leader Ayatollah Ali Khamenei, over 150 schoolgirls and senior military officials. Iran has retaliated with sweeping barrages targeting US bases, diplomatic facilities and military personnel across the region, as well as multiple Israeli cities. At least six US service members have been killed. At least 10 Asian nationals—three each from Bangladesh and Pakistan, two from India, and one each from China and Nepal—have been killed in the conflict. Three Indonesians remain missing after a UAE-flagged tugboat sank in the Strait of Hormuz on Friday after being hit by a projectile.