Governments across Asia are preparing for worst-case energy scenarios that could include a prolonged and severe disruption to supplies, even as the US draws up a plan to end the war in Iran.
South Korea has shifted into crisis mode, establishing an emergency economic task force to prepare for adverse scenarios.
The Philippines has declared a national emergency, citing an “imminent danger of a critically low energy supply”. The country’s Washington ambassador said it was working with the US to secure exemptions that would allow it to obtain oil from US-sanctioned countries.
Japan is reviewing its entire supply chain of petrol-related products due to the likelihood of shortages and knock-on effects across the economy, while India’s Prime Minister Narendra Modi has warned the war could cause unprecedented challenges for the nation.
In under a month since the Middle East conflict began, nations have shifted into emergency footing, highlighting the Strait of Hormuz’s importance to global energy flows, particularly to Asia. Iran has effectively closed the Strait to all but approved vessels.
Reuters
