The global energy system is under serious strain.
On Mar.2, a senior commander from Iran's Revolutionary Guards announced the complete closure of the Strait of Hormuz. He warned that any vessel trying to pass through would be targeted.
The Strait of Hormuz, located between Oman and Iran, is one of the world's most important oil routes. In 2025, about 13 million barrels of oil moved through it each day — around 31% of all crude shipped by sea. With this route blocked, Brent crude has risen to $80 per barrel, up 10% since the conflict began. Some analysts now see $100 oil as a real possibility.
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Qatar strikes and gas disruption
The crisis goes beyond oil.
Around 20% of the world's liquefied natural gas also passes through the same waterway. On March 2, Iranian drones struck facilities at Ras Laffan and Mesaieed Industrial Cities in Qatar.
Qatar is one of the world's largest LNG suppliers. Its production halt has affected markets across the Pacific. In a report, Nomura says Thailand, India, South Korea and the Philippines are most at risk. Malaysia, as an energy exporter, could benefit.
South Asia under pressure
South Asia is especially vulnerable.
Pakistan and Bangladesh have limited energy storage. Bangladesh already faces a gas shortage of more than 1,300 million cubic feet per day.
India is dealing with what analysts describe as a "dual shock." More than half of its LNG imports come from the Gulf, and many contracts are tied to oil prices. About 60% of India's oil also comes from the Middle East. A prolonged blockade would raise import costs and strain the economy.
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China's buffer
China, the world's largest crude importer, is also exposed.
It buys over 80% of Iran's oil and depends on the Strait for 40% of its total oil imports. However, analysts at Kpler say China has more flexibility than its neighbors.
By late February, China held 7.6 million tons of LNG in storage. That offers short-term protection. But if disruptions continue, China may need to buy supplies from the Atlantic market, which would raise prices across the Pacific region.
Japan and South Korea at risk
Japan and South Korea rely heavily on Middle Eastern oil — 75% and 70% respectively.
Their LNG exposure to the Gulf is lower than South Asia's, but higher oil prices alone could hurt their economies. South Korea's net oil imports equal 2.7% of its GDP.
Both countries hold limited reserves, covering roughly two to four weeks of demand. That leaves little room if supply disruptions continue.
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Crypto and energy
The energy crisis is also affecting cryptocurrency markets.
Bitcoin mining requires large amounts of electricity. Higher oil prices increase power costs, which can reduce mining profits.
At the same time, rising oil prices can fuel inflation. In such conditions, some investors view Bitcoin as a decentralized store of value, outside traditional financial systems and geopolitical disruptions
Southeast Asia's inflation risk
In Southeast Asia, the main concern is rising living costs.
Thailand is particularly exposed. Its net oil imports equal 4.7% of GDP, the highest in the region. Nomura estimates that every 10% increase in oil prices worsens Thailand's current account by 0.5 percentage points.
Countries that rely on spot energy markets may also struggle as they compete with Europe for more expensive replacement supplies from the Atlantic.
Related: Gold prices fall amid inflation risks
This story was originally published by TheStreet on Mar 3, 2026, where it first appeared in the MARKETS section. Add TheStreet as a Preferred Source by clicking here.
