Asia’s fuel crisis caused by Iran-US war blocking Strait of Hormuz
Consensus Summary
The core story is the severe fuel and energy crisis gripping Asia due to Iran’s blockade of the Strait of Hormuz, which carries 80% of Asia’s oil and LNG. The conflict between the US, Israel, and Iran—triggered by US-Israeli airstrikes on February 28—has led Iran to close the vital shipping lane, disrupting supply chains and causing fuel shortages across the region. Sri Lanka, Thailand, the Philippines, Vietnam, and even Myanmar have implemented drastic measures like four-day workweeks, fuel rationing, and work-from-home mandates to conserve dwindling reserves. Sri Lanka’s fuel rationing limits motorists to 15 litres per week, while its reserves are estimated to last six weeks, though further disruptions could worsen the crisis. India, reliant on Gulf states for 60% of its LPG, faces long queues and potential business closures, though diplomatic efforts allowed two tankers to pass through the Strait. Beyond oil, the crisis has also impacted helium supplies, with Qatar’s plant closures raising concerns for semiconductors and medical industries. Economists warn the situation could push Indonesia into recession and deepen Sri Lanka’s post-2022 economic struggles, as governments scramble to balance energy subsidies with budget constraints.
✓ Verified by 2+ sources
Key details reported by multiple sources:
- Sri Lanka introduced a four-day work week (including state institutions, schools, and universities) starting March 6, 2024, to conserve fuel due to Middle East conflict (ABC, Guardian, NewscomaU).
- Iran blocked the Strait of Hormuz on February 28, 2024, disrupting 80% of Asia’s oil and LNG supply (ABC, Guardian, NewscomaU).
- Sri Lanka’s fuel rationing limits motorists to 15 litres of petrol/diesel per week and public transport to 200 litres (ABC, Guardian, NewscomaU).
- Sri Lanka’s fuel reserves are estimated to last nearly six weeks, but further disruptions could severely impact the country (ABC, Guardian, NewscomaU).
- India’s LPG gas supplies are 60% dependent on Gulf states, with long queues forming nationwide (Guardian, ABC).
- Thailand imports 50% of its crude oil and 30% of its LNG from the Middle East, with 80% of its oil passing through the Strait of Hormuz (ABC).
- Qatar’s helium plants (supplying ~33% of global helium) were closed due to Iran war, raising concerns for semiconductor and medical industries (ABC).
- The Philippines and Vietnam introduced temporary four-day workweeks or work-from-home policies to reduce fuel consumption (ABC, NewscomaU).
- Pakistan raised fuel prices and imposed scheduled power blackouts to curb hoarding (Guardian).
- Bangladesh announced early Ramadan holidays for universities and power blackouts to save energy (Guardian).
- Sri Lanka’s President Anura Kumara Dissanayake warned officials: ‘We must prepare for the worst, but hope for the best’ (Guardian, NewscomaU).
- India’s foreign minister Subrahmanyam Jaishankar negotiated with Iran to allow two Indian tankers to pass through the Strait of Hormuz (Guardian).
- Sri Lanka’s economic crisis in 2022 led to a $46 billion foreign debt default, and it secured a $2.9 billion IMF bailout (NewscomaU, ABC).
- Myanmar’s military government imposed alternate-day restrictions on private vehicles to conserve fuel (NewscomaU)
Points of Difference
Details reported by only one source:
- Ram Bahadur Shahni, a 35-year-old street vendor in New Delhi, struggles to buy LPG cylinders, with prices rising to 300-400 INR ($4-6) per kg, while earning 400-500 INR daily (ABC).
- Zulfiqar Ali, a tea stall owner in Delhi, may close his business due to soaring gas prices and is considering returning to his village (ABC).
- Professor Shahriar Akter noted India’s cremation services are suspended due to LPG shortages (ABC).
- Thailand is increasing coal power generation to preserve LNG supplies and has frozen cooking gas prices until May (ABC).
- Thailand discussed purchasing LNG from Russia as fuel prices skyrocketed (ABC).
- Economist Bhima Yudhistira warned Indonesia could face a technical recession in Q2 2026 if fuel and LPG prices rise further (ABC).
- Helium prices are rising due to Qatar’s plant closures, impacting Taiwan’s semiconductor sector and South Korea’s tech industries (ABC).
- Carlos Pacheco (Aurora Insights) noted Taiwan faces shortages of helium and bromine for chip production (ABC).
- Eric May (University of Western Australia) warned even if Qatar’s plants reopened, shipping helium through the Strait of Hormuz remains dangerous (ABC).
- A mother in Indonesia’s East Java, Setiawati, tightened her Ramadan budget by shopping at low-cost markets due to rising energy costs (ABC).
- Thailand’s government suggested professionals wear short-sleeved shirts instead of suits to save on air conditioning (ABC).
- Thailand’s Prime Minister Anutin Charnvirakul ordered civil servants to work from home with exceptions for public-facing roles (ABC).
- Thailand prohibited overseas trips and directed employees to use stairs instead of elevators (ABC).
- Thailand set office air conditioning to no less than 26°C (ABC).
- Bangladesh imposed scheduled power blackouts to save energy for its garment factories (Guardian).
- Pakistan moved schools to remote online teaching and raised fuel prices to stop hoarding (Guardian).
- India’s prime minister Narendra Modi assured people there was no LPG shortage and urged no panic (Guardian).
- India’s two tankers successfully navigated the Strait of Hormuz on February 28, 2024, after direct negotiations with Iran (Guardian).
- India’s foreign minister Subrahmanyam Jaishankar stated: ‘I am at the moment engaged in talking to them and my talking has yielded some results’ (Guardian).
- India’s steel plant and hotels warned they would soon have to close due to LPG shortages (Guardian).
- Long queues formed in India for cooking gas canisters, and many restaurants removed slow-cooking dishes from menus (Guardian).
- Sri Lanka’s President Anura Kumara Dissanayake’s exact quote: ‘We must prepare for the worst, but hope for the best’ was reported by a meeting attendee (NewscomaU).
- The Philippines reduced electricity consumption and petrol costs by up to 20% for government agencies (NewscomaU).
- The Philippines temporarily prohibited non-essential government travel and activities like study tours (NewscomaU).
- Thailand’s Prime Minister Anutin Charnvirakul’s name was explicitly mentioned in the order for civil servants to work from home (NewscomaU).
- Sri Lanka’s fuel rationing began on Sunday (March 3, 2024) (NewscomaU).
Contradictions
Conflicting information between sources:
- ABC reports Thailand is increasing coal power generation to preserve LNG supplies, while NewscomaU does not mention this detail.
- Guardian states India’s foreign minister Subrahmanyam Jaishankar negotiated directly with Iran to allow tankers through the Strait, but ABC and NewscomaU do not mention this negotiation.
- ABC and NewscomaU report Sri Lanka’s four-day workweek applies to schools and universities indefinitely, while Guardian does not specify the duration for schools and universities.
- ABC reports Thailand is purchasing LNG from Russia, but Guardian and NewscomaU do not mention this.
- Guardian reports India’s two tankers successfully passed through the Strait on February 28, 2024, while ABC and NewscomaU do not confirm this date or success.
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