Two months into the war in Iran, energy markets are still in turmoil — and nowhere has felt the havoc more acutely than Asia.
Nearly 90% of the oil and gas transiting the Strait of Hormuz is bound for the region and the disruption is showing up directly in electricity bills, fuel costs, shortages and the creeping anxiety of energy insecurity.
In response, some countries have switched suppliers toward other oil and gas markets such as the United States. But let’s be honest, this strategy just swaps one fossil fuel import dependency for another. It does not eliminate the underlying price vulnerability given that we have global benchmark prices for oil and gas that closely track each other. It just relocates it.