Asian Energy Markets Face Prolonged Crisis as Middle East Routes Close

Vandana Hari, founder of Vanda Insight, suggests that Asia’s heavy reliance on Middle Eastern crude creates a structural fragility that will persist long after the current hostilities subside. Because regional proximity makes these imports more economical than sourcing from the United States, Asian nations remain tethered to a volatile supply chain. Recent Houthi threats near the Bab el-Mandeb Strait have already forced tankers bound for Asia to abandon the route, opting for longer, costlier journeys via the Suez Canal.

Oil prices continue to climb as the U.S. intensifies its campaign, having conducted 11 strikes against Iranian targets. These persistent hostilities have effectively sidelined diplomatic mediation efforts, leaving markets to absorb the shock of disrupted transit. For major importers like India, the financial toll is already evident, with import bills surging by more than 60% in the second quarter alone. As shipping lanes remain contested, the transition toward alternative energy security becomes a matter of long-term economic survival rather than simple market adjustment.