BANGKOK — Global energy markets are in turmoil as the conflict surrounding the Persian Gulf disrupts shipments of oil and natural gas, sending prices soaring. The escalating tensions are particularly impacting Asia, which heavily relies on imported fuels transported through the Strait of Hormuz.
Approximately 13 million barrels of oil per day transited the crucial waterway in 2025, according to energy consultancy Kpler. This represents nearly a third of all crude oil transported by sea, which is then refined into products like gasoline and diesel. Roughly one-fifth of global Liquefied Natural Gas (LNG) similarly passes through the strait.
In 2024, over 80% of the LNG shipped through the Strait of Hormuz was destined for Asia, according to the U.S. Energy Information Administration. The disruption to these vital supply lines is causing significant price increases across the region.
Brent crude, the international benchmark, has risen 15% since the start of the conflict with Iran, reaching approximately $84 per barrel – the highest level since July 2024. This surge in oil prices is exacerbating concerns about global economic growth and inflationary pressures.
Asian stock markets have reacted sharply to the energy crisis, experiencing significant declines. Several exchanges saw drops of up to 6%, marking the largest single-day fall since the height of the COVID-19 pandemic. South Korea’s Kospi index experienced a more than 8% drop, triggering a temporary suspension of trading.
The price of Brent crude surpassed $100 per barrel as trading resumed after the weekend, a 37% increase in the last week. U.S. Drivers are now paying an average of $3.40 per gallon of gasoline, a 50-cent increase since February 27th. European natural gas prices have also jumped 64% since the outbreak of hostilities.
The most severe effects of the energy shock are being felt in Asia, which receives between 40% and 80% of its crude oil imports from the Gulf via maritime routes. The region also imports nearly a third of its LNG from the Gulf, with some smaller Asian nations relying even more heavily on these supplies. The blockage of the Strait of Hormuz has created a sense of urgency as governments and businesses scramble to secure alternative fuel sources.
The difference in prices between various types of crude oil in different locations is also widening, reflecting the growing anxiety in the market. Omani crude, which remains available in considerable volumes due to Oman’s export terminals being located outside the Gulf, is typically priced at a discount to Brent. This dynamic is shifting as the market seeks alternative supplies.
