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The escalating crisis around Iran is doing more than just shaking global energy markets. It is constricting the arteries of Asian growth.
A massive share of the oil and liquefied natural gas (LNG) that powers Asian economies passes through the Strait of Hormuz. When tensions rise around this narrow waterway, economic shock waves travel quickly across the region, exposing a development model whose foundations remain dangerously outside Asia’s strategic control.
Japan and South Korea, both heavily reliant on crude shipments passing through the strait, have already seen financial markets react sharply as investors weigh the risks of higher energy costs for manufacturing and export industries. While somewhat buffered by its large strategic oil reserves and LNG inventories, China has moved to halt refined fuel exports to safeguard domestic supply.
In Southeast Asia, import-dependent economies such as Singapore, Thailand, the Philippines and Vietnam face rising inflationary pressure as higher fuel prices ripple through energy bills, transport costs and industrial supply chains.
Meanwhile, the crisis has triggered renewed calls to accelerate renewable energy deployment. The logic is straightforward: home-grown wind and solar reduce dependence on imported fuels and strengthen energy security. However, the transition is far more complex than simply replacing one energy source with another.
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How US-Israeli strikes on Iran are sending shock waves through global energy markets
How US-Israeli strikes on Iran are sending shock waves through global energy markets
In Asia’s manufacturing hubs, crude oil is not just a fuel – it is the hidden ingredient of modern life. It is processed into the plastics and insulators inside smartphones and laptops, the synthetic polyester in our clothing and the lightweight resins used to build TVs and household appliances.
China’s drug maker WuXi AppTec reported record first-quarter revenue, as a robust order backlog and sustained demand from global pharmaceutical companies supported growth. For the three months ended March 31,…
Chinese toymaker Pop Mart continues to leverage the popularity of its collectibles as it launches two limited-edition Labubu-themed mini-refrigerators on Thursday. Capped at 999 units for each design, the appliances…
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