The Middle East Crisis and Southeast Asia’s Energy Vulnerability

 

Authors : Sreeparna Banerjee | Abhishek Sharma

Published on:  Apr 29, 2026

 

The Hormuz crisis has exposed Southeast Asia’s structural energy vulnerabilities, turning external disruption into region-wide economic stress

 

On 28 February 2026, the United States (US) and Israel launched a joint military offensive against Iran, leading to the rapid closure of the Strait of Hormuz—one of the world’s most critical energy chokepoints. By 4 March, maritime traffic had fallen to less than 10 percent of pre-war levels, pushing oil prices to US$ 95 per barrel and sharply increasing LNG prices in Asian markets. Although a temporary ceasefire enabled limited shipping to resume, transit remains restricted and volatile, as intermittent disruptions keep flows well below normal levels. 

 

For full article, please open the link:

https://www.orfonline.org/expert-speak/the-middle-east-crisis-and-southeast-asia-s-energy-vulnerability

 

 

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The opinions expressed in this article are the authors’ own and do not necessarily reflect the official policy, position or view of IRSEA