By Micah Jonah
March 1, 2026
Asian governments, oil refiners are assessing emergency stockpiles, seeking alternative supplies as escalating conflict involving Iran disrupts shipping through the strategic Strait of Hormuz.
The narrow waterway between Iran and Oman handles roughly 20 percent of global oil consumption daily, making it one of the world’s most critical energy chokepoints. Any prolonged disruption is expected to push oil prices higher when global markets reopen.
Asia is particularly vulnerable, importing about two-thirds of its crude from the Gulf. China sources roughly half of its oil from the region, while nearly 90 percent of Japan’s supply comes from Middle Eastern producers.
Japanese shipping firms have reportedly halted operations around the Strait of Hormuz, though Tokyo said it had not yet received confirmation of immediate supply shortages. In India, state refiners have begun scouting for alternative crude sources. Officials say the country maintains reserves of about 20 days of crude and liquefied petroleum gas, which could cushion short-term shocks.
South Korea’s government has indicated it may release petroleum from national stockpiles if disruptions persist. An official noted that combined reserves with the state-run Korean National Oil Corporation could last several months if necessary. Refiners in Taiwan said shipments were continuing as scheduled, while China has boosted crude stockpiles in recent months.
Energy analysts say the slowdown in shipping activity appears to be linked more to insurance concerns and operational risks than to a complete blockade of the Strait. Several tanker owners and major energy traders have temporarily suspended shipments of crude, fuel and liquefied natural gas through the corridor.
Market watchers also note that output increases from the OPEC+ producers’ alliance could temper price spikes, although uncertainty remains high.
The growing tensions underscore the strategic importance of the Strait of Hormuz to global energy security, with Asian economies watching closely for further developments.
