The Gulf conflict is highlighting how deeply Asian nations depend on Middle Eastern oil and gas, leaving their economies and power grids at the mercy of volatile prices and supply lines. According to the authors of the newly released report, this heavy reliance on imported fossil fuels makes the region especially susceptible to international shocks that can trigger high inflation and stall economic growth.
“Around 84% of crude oil and 83% of liquefied natural gas that passed through the Strait of Hormuz went to Asia in 2024. Singapore and Thailand, the two Southeast Asian countries that are most reliant on imported gas, sourced the largest share of LNG from Qatar last year, at 42% and 27% shares respectively of total imports.”
These figures show that most of the energy powering homes and businesses in Asia flows through a single, narrow shipping route that is currently caught in a geopolitical crisis. When this supply is threatened or when prices jump because of the conflict, Asian countries have to pay significantly more for their electricity and fuel, which then drives up the cost of everyday goods and services for their citizens.
The report “Overcoming fossil lock-in is pivotal for Asia to buffer against energy shocks” was published by the UK-based energy think tank Ember on March 23, 2026. Authored by senior energy analysts Dinita Setyawati and Muyi Yang, the briefing explores how recent geopolitical conflicts are exposing the vulnerability of Asian economies to fossil fuel price volatility and supply disruptions.
