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Asia Reviews Energy Supplies After Four Months of Gulf Conflict
Energy importers across Asia are reassessing supply security following four months of conflict in the Persian Gulf. Policymakers cite the need for larger reserves, more supplier options, and a wider range of power sources.
Japan TimesAudio version
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Flows of oil and natural gas through the Strait of Hormuz have returned toward normal levels after an interim U.S.-Iran accord was signed last month. Prices have fallen since the waterway reopened. The four-month disruption prompted governments in the region to examine their exposure to concentrated supply routes.
Officials are considering steps to increase storage capacity and broaden the set of countries from which they purchase fossil fuels.
Energy ministries are also weighing changes to the overall power mix. Several governments have discussed expanding the share of non-fossil sources to reduce dependence on any single fuel type. The interim accord has eased immediate supply concerns, yet planners continue to track developments in the Persian Gulf.
No long-term agreement has been reached. Regional demand for Middle Eastern crude and liquefied natural gas remains high. Countries that import the majority of their energy supplies are therefore most directly affected by any renewed interruption.
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