Countries in Asia are scrambling to conserve energy and protect consumers as the war on Iran and attacks on gas fields and oil refineries disrupt critical supplies, rattling markets and driving up prices.
The crisis is hitting Asia hardest because of its heavy reliance on imported energy, much of which is shipped through the Strait of Hormuz, a key choke point now under strain. Only about 90 vessels — mostly Indian, Pakistani and Chinese-flagged — have made it through the strait since the beginning of Israeli and U.S. attacks on Iran, and Iran's strikes against Israel and Gulf Arab neighbors, on Feb. 28.
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Iran intensified its attacks on oil and gas facilities around the Gulf on Thursday, dramatically raising the stakes in a war that is sending shock waves through the global economy.
The strikes, in retaliation for an Israeli attack on a key Iranian gas field, sent fuel prices soaring and risked drawing Iran's Arab neighbors directly into the conflict. Tehran's targeting of energy production further stressed global supply already under pressure because of Iran's stranglehold on the Strait of Hormuz, a strategic waterway through which a fifth of the world's oil is transported.
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European leaders doubled down Thursday on refusing to join the United States and Israel military campaigns in the Middle East as they met in Brussels to grapple with rising oil and gas prices caused by the war.
European leaders have deflected entreaties from U.S. President Donald Trump to send military assets to secure the Strait of Hormuz, a key waterway for the global flow of oil, gas and fertilizer. However, rising energy prices because of the war and fears in Europe of a new refugee crisis have pushed leaders to make the Middle East a priority at the summit.
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Iran's military said it would target energy infrastructure across the Gulf following a U.S.-Israeli attack on its facilities at a major gas field, state television reported on Wednesday.
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The escalating war with Iran is pushing parts of the world into energy triage, forcing governments to choose where to cut demand or absorb costs, while prioritizing dwindling supplies.
Asia is the most exposed since it relies heavily on imported fuel, much of it shipped through the now-blocked Strait of Hormuz. The narrow passage offshore from Iran is the main route for shipping a fifth of global trade in crude oil and liquified natural gas.
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NATO allies and other Western nations pushed back Monday on U.S. President Donald Trump's demand that military alliance members help reopen the Strait of Hormuz, the critical conduit for crude oil Iran has effectively closed.
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After being forced to flee with his family from Israeli air raids on southern Lebanon, Hussein Fakih searched in vain for an apartment, amid strict measures imposed by hotels and landlords afraid that guests might be targeted by Israel.
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Every day more than $4 billion worth of goods cross the United States' borders with Canada and Mexico – U.S. auto parts headed for car factories in northern Mexico, cartons of Mexican avocados bound for California supermarkets, Canadian aluminum destined to become cans of Campbell Soup.
Much of this bustling cross-border commerce is duty-free, thanks to the US-Mexico-Canada Agreement, or USMCA, that President Donald Trump negotiated with America's northern and southern neighbors during his first term.
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Fears of a global energy crisis rose Monday as the war in the Middle East raged on, with more U.S.-Israeli strikes on the Iranian capital and Israel's bombardment of Lebanon. An Iranian drone strike temporarily shut Dubai's airport, a crucial global travel hub, underscoring the threats to the world economy.
Since the United States and Israel attacked Iran more than two weeks ago, Tehran has regularly fired on Israel, American bases in the region, and Gulf Arab countries' energy infrastructure with drones and missiles.
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Iran threatened Saturday to reduce U.S.-linked oil facilities to "a pile of ashes" as the two-week-old Middle East war spilled over into a global oil price crisis.
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