Iran Conflict Reveals Global Dependence on Gulf Energy
The US-Israel war with Iran has driven oil above $100 a barrel and exposed Asia’s heavy reliance on Gulf energy, as disruptions to shipping and the Strait of Hormuz tighten crude supplies. Southeast Asian refineries are configured for heavy Middle Eastern crude, making quick shifts costly while governments push fuel-saving measures and subsidies. Europe redirects LNG away from Russia and the US expands domestic gas, though export limits curb relief. China appears relatively better positioned due to stockpiles and EV adoption, but the global energy system remains fragile, highlighting Asia’s vulnerability to Gulf oil and gas.
