Iran Closes Strait of Hormuz

Crude oil prices hit a fresh high since the start of the war in Iran, driven by increasing concern about the geopolitical situation in the Middle East. 18%. 13%.

14%. 81%. 69% as of three days ago.

27% as of two days ago. 94% as of 21 hours ago. Brent broke $113 as traders braced for months of disruption.

The Strait of Hormuz remains effectively closed to shipping nearly nine weeks into the conflict. The world’s biggest LNG plant in Qatar was damaged by missile attacks last month. The war in the Middle East drove a 70% increase in LNG prices in Asia.

The Middle East crisis triggered fuel shortages, refinery cuts, and emergency measures across Asia. California gas prices went past $6 a gallon due to Strait of Hormuz fears. Asia fired up coal power plants in response to the shock loss of crude supply from the Middle East.

Asia sought to save fuel and scour global markets for alternative oil deliveries following the loss of crude supply from the Middle East. The Iran war and Strait of Hormuz crisis prompted immediate measures to reduce oil and gas consumption in Asia. Several Japanese power producers withheld full-year earnings guidance due to uncertainty around LNG supply and cost.

Tokyo Electric Power Company Holdings did not provide guidance for the fiscal year ending March 2027 when publishing prior-year earnings on May 1, 2026. Tohoku Electric Power refrained from announcing guidance for the fiscal year ending March 2027.

Japan weighs $3 billion power subsidies as LNG crunch bites. Pakistan PM stated oil import costs up 167% since Iran war began. 88 per share as refining margins surged.

UAE quit OPEC and OPEC+ as Hormuz crisis drags on. Oil prices rose due to increasing concern about the geopolitical situation in the Middle East, said Sky Links Capital Group. The crisis exposed Asia’s vulnerability to fossil fuel imports, prompting a surge in electric vehicle adoption and faster rollout of renewables.

Refiners slashed run rates, countries banned fuel exports, and some declared emergencies with work-from-home policies. Energy security gained priority as import bills soared. EV sales soared across Asia, with China’s makers benefiting from demand in South and Southeast Asia.

Southeast Asia led global EV adoption even before the war, with high sales penetration in Singapore, Vietnam, Thailand, and Indonesia. The crisis marked Asia’s 'Ukraine moment,' similar to Europe’s experience four years ago when Russian gas deliveries halted.

““The assumption that EV growth will stall outside Europe and China is already outdated. Emerging markets will shape the future of the global car market,” Euan Graham, Electricity and Data Analyst at Ember, said in December. Installations and plans for solar and wind capacity additions accelerated in Asia. The energy mix pivots away from fossil fuels, with electrification and batteries set to curb future oil demand growth. The sudden loss of crude supply spiked fuel prices, turning consumers to electric vehicles. Asia’s quiet electrification revolution in South and Southeast Asia gains momentum beyond China’s renewables and EV boom.”