{"id":4747,"date":"2026-05-11T17:33:21","date_gmt":"2026-05-11T17:33:21","guid":{"rendered":"https:\/\/siliconvalleymovingpost.com\/?p=4747"},"modified":"2026-05-11T17:33:21","modified_gmt":"2026-05-11T17:33:21","slug":"asia-braces-for-a-second-wave-of-energy-shocks-from-the-iran-war","status":"publish","type":"post","link":"https:\/\/siliconvalleymovingpost.com\/?p=4747","title":{"rendered":"Asia braces for a second wave of energy shocks from the Iran war"},"content":{"rendered":"<div><p><strong>By ANTON L. DELGADO and ANIRUDDHA GHOSAL<\/strong><\/p>\n<p>BANGKOK (AP) \u2014 Asia\u2019s first defenses against energy shocks from the Iran war are running short and a more consequential second wave of impacts is beginning to hit.<\/p><p>Read more <a href=\"https:\/\/siliconvalleymovingpost.com\/?p=4740\">Philippine vice president impeached by lawmakers over suspected wealth and threats<\/a><\/p>\n<p>When the war started, governments scrambled to adapt to the closure of the Strait of Hormuz, a critical artery for energy flowing to Asia. They made difficult trade-offs: saving power at the risk of slowing businesses, prioritizing gas for households at the risk of fertilizer production and dipping into energy stockpiles for temporary relief.<\/p>\n<p>But these measures were based on the war lasting only a short time, allowing a quick resumption of energy flows. That has not happened.<\/p>\n<p>With no clear end in sight, the fuel crisis is now rippling across economies. Airfare costs, shipping rates and utility bills are climbing, jeopardizing economic growth. About 8.8 million people are in danger of being pushed into poverty and the conflict may cause $299 billion in economic losses to the Asia-Pacific region, according to the United Nations Development Program.<\/p>\n<p>\u201cThe countries with the least resources to respond, or the consumers who can least afford to pay, are the ones who feel everything first,\u201d said Samantha Gross of the U.S.-based think tank Brookings Institution.<\/p>\n<p>Asian governments planned their budgets assuming the price of oil would average around $70 a barrel. Subsidies helped to keep fuel prices stable. But the war pushed the price of Brent crude to as high as about $120 a barrel.<\/p>\n<p>Governments now face a stark choice between maintaining those costly subsidies, straining public finances, or cutting them to pass higher costs on to consumers, risking a public backlash, said Ahmad Rafdi Endut, a Kuala Lumpur-based independent energy analyst.<\/p> <div>\n<\/div>\n<div><ul><div><div><li><div>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" alt=\"Protesters hold slogans beside police during a rally by transport workers and activists protesting the rise in oil prices\" class=\"wp-image-4742\" height=\"683\" src=\"https:\/\/siliconvalleymovingpost.com\/wp-content\/uploads\/2026\/05\/c23e1a7322c1dd3ee572c9f2e7f209f1-1024x683.webp\" width=\"1024\" srcset=\"https:\/\/siliconvalleymovingpost.com\/wp-content\/uploads\/2026\/05\/c23e1a7322c1dd3ee572c9f2e7f209f1-1024x683.webp 1024w, https:\/\/siliconvalleymovingpost.com\/wp-content\/uploads\/2026\/05\/c23e1a7322c1dd3ee572c9f2e7f209f1-300x200.webp 300w, https:\/\/siliconvalleymovingpost.com\/wp-content\/uploads\/2026\/05\/c23e1a7322c1dd3ee572c9f2e7f209f1-768x512.webp 768w, https:\/\/siliconvalleymovingpost.com\/wp-content\/uploads\/2026\/05\/c23e1a7322c1dd3ee572c9f2e7f209f1-1536x1025.webp 1536w, https:\/\/siliconvalleymovingpost.com\/wp-content\/uploads\/2026\/05\/c23e1a7322c1dd3ee572c9f2e7f209f1.webp 1859w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n<div>FILE \u2013 Protesters hold slogans beside police during a rally by transport workers and activists protesting the rise in oil prices on March 27, 2026, near the Malacanang presidential palace in Manila, Philippines. (AP Photo\/Aaron Favila, File)\n<\/div><\/div><\/li><li><div>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" alt=\"chef lights a fire with wood and coal to prepare food\" class=\"wp-image-4743\" height=\"666\" src=\"https:\/\/siliconvalleymovingpost.com\/wp-content\/uploads\/2026\/05\/01b21d1fc894c0ceb4d7eec90ddb3cf2-1024x666.webp\" width=\"1024\" srcset=\"https:\/\/siliconvalleymovingpost.com\/wp-content\/uploads\/2026\/05\/01b21d1fc894c0ceb4d7eec90ddb3cf2-1024x666.webp 1024w, https:\/\/siliconvalleymovingpost.com\/wp-content\/uploads\/2026\/05\/01b21d1fc894c0ceb4d7eec90ddb3cf2-300x195.webp 300w, https:\/\/siliconvalleymovingpost.com\/wp-content\/uploads\/2026\/05\/01b21d1fc894c0ceb4d7eec90ddb3cf2-768x499.webp 768w, https:\/\/siliconvalleymovingpost.com\/wp-content\/uploads\/2026\/05\/01b21d1fc894c0ceb4d7eec90ddb3cf2-1536x998.webp 1536w, https:\/\/siliconvalleymovingpost.com\/wp-content\/uploads\/2026\/05\/01b21d1fc894c0ceb4d7eec90ddb3cf2.webp 1860w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n<div>FILE \u2013 Atul Lahkar, from the Assam region, chef lights a fire with wood and coal to prepare food for his restaurant following a regional gas shortage in Guwahati, India, on March 19, 2026. (AP Photo\/Anupam Nath, File)\n<\/div><\/div><\/li><li><div>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" alt=\"A person carries gas cylinders on his bicycle in Kathmandu\" class=\"wp-image-4744\" height=\"682\" src=\"https:\/\/siliconvalleymovingpost.com\/wp-content\/uploads\/2026\/05\/5f2c35da598bebfab426ffbf3f4699d5-1024x682.webp\" width=\"1024\" srcset=\"https:\/\/siliconvalleymovingpost.com\/wp-content\/uploads\/2026\/05\/5f2c35da598bebfab426ffbf3f4699d5-1024x682.webp 1024w, https:\/\/siliconvalleymovingpost.com\/wp-content\/uploads\/2026\/05\/5f2c35da598bebfab426ffbf3f4699d5-300x200.webp 300w, https:\/\/siliconvalleymovingpost.com\/wp-content\/uploads\/2026\/05\/5f2c35da598bebfab426ffbf3f4699d5-768x512.webp 768w, https:\/\/siliconvalleymovingpost.com\/wp-content\/uploads\/2026\/05\/5f2c35da598bebfab426ffbf3f4699d5-1536x1023.webp 1536w, https:\/\/siliconvalleymovingpost.com\/wp-content\/uploads\/2026\/05\/5f2c35da598bebfab426ffbf3f4699d5.webp 1860w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n<div>FILE \u2013 A person carries gas cylinders on his bicycle in Kathmandu, on March 19, 2026. (AP Photo\/Niranjan Shrestha, File)\n<\/div><\/div><\/li><li><div>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" alt=\"a jet flies above a gas station\" class=\"wp-image-4745\" height=\"683\" src=\"https:\/\/siliconvalleymovingpost.com\/wp-content\/uploads\/2026\/05\/e115a33496c7ef55bcbaf6bb8a10c133-1024x683.webp\" width=\"1024\" srcset=\"https:\/\/siliconvalleymovingpost.com\/wp-content\/uploads\/2026\/05\/e115a33496c7ef55bcbaf6bb8a10c133-1024x683.webp 1024w, https:\/\/siliconvalleymovingpost.com\/wp-content\/uploads\/2026\/05\/e115a33496c7ef55bcbaf6bb8a10c133-300x200.webp 300w, https:\/\/siliconvalleymovingpost.com\/wp-content\/uploads\/2026\/05\/e115a33496c7ef55bcbaf6bb8a10c133-768x512.webp 768w, https:\/\/siliconvalleymovingpost.com\/wp-content\/uploads\/2026\/05\/e115a33496c7ef55bcbaf6bb8a10c133-1536x1025.webp 1536w, https:\/\/siliconvalleymovingpost.com\/wp-content\/uploads\/2026\/05\/e115a33496c7ef55bcbaf6bb8a10c133.webp 1859w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n<div>FILE \u2013 An ANA jet flies above a gas station in Inglewood, Calif., on May 6, 2026. (AP Photo\/Jae C. Hong, File)\n<\/div><\/div><\/li><li><div>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" alt=\"Gasoline drops from the nozzle\" class=\"wp-image-4746\" height=\"682\" src=\"https:\/\/siliconvalleymovingpost.com\/wp-content\/uploads\/2026\/05\/d5436ee5b5a34cec006bc5e237ae785b-1024x682.webp\" width=\"1024\" srcset=\"https:\/\/siliconvalleymovingpost.com\/wp-content\/uploads\/2026\/05\/d5436ee5b5a34cec006bc5e237ae785b-1024x682.webp 1024w, https:\/\/siliconvalleymovingpost.com\/wp-content\/uploads\/2026\/05\/d5436ee5b5a34cec006bc5e237ae785b-300x200.webp 300w, https:\/\/siliconvalleymovingpost.com\/wp-content\/uploads\/2026\/05\/d5436ee5b5a34cec006bc5e237ae785b-768x512.webp 768w, https:\/\/siliconvalleymovingpost.com\/wp-content\/uploads\/2026\/05\/d5436ee5b5a34cec006bc5e237ae785b-1536x1023.webp 1536w, https:\/\/siliconvalleymovingpost.com\/wp-content\/uploads\/2026\/05\/d5436ee5b5a34cec006bc5e237ae785b.webp 1860w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n<div>FILE \u2013 Gasoline drops from the nozzle of a fuel pump as it fills a motorcycle as prices continue to rise at a gasoline station in Quezon City, Philippines on March 19, 2026. (AP Photo\/Aaron Favila, File)\n<\/div><\/div><\/li><\/div><\/div><\/ul><div><div>FILE \u2013 Protesters hold slogans beside police during a rally by transport workers and activists protesting the rise in oil prices on March 27, 2026, near the Malacanang presidential palace in Manila, Philippines. (AP Photo\/Aaron Favila, File)\n<\/div><span>Expand<\/span><\/div><\/div>\n<h4>Asia braces for a second wave of impacts<\/h4>\n<p>In India, early steps to redirect fuel supplies toward cooking gas for roughly 330 million households cut into supplies for fertilizer plants. The surging of fertilizer prices and meteorologists warning of weak rainfall in an El Ni\u00f1o year is a concern for the world\u2019s largest rice exporter.<\/p>\n<p>India has relied on subsidies to shield its 1.4 billion people until now, but on Sunday, Prime Minister Narendra Modi urged citizens to buy locally and cut down on travel abroad to save dollars. He also encouraged people to work from home and use public transport to reduce fuel consumption, and asked farmers to halve fertilizer use.<\/p>\n<p>The Philippines quickly shifted to a four-day work week to save fuel. It also rolled out targeted subsidies for poorer households. However, Fitch Ratings noted that most consumers are still paying higher energy costs, causing business activity to slow in major cities like Manila.<\/p>\n<p>Thailand abandoned its diesel price cap less than a month after the conflict began, as its fuel subsidies ran out. It\u2019s now cutting other spending to manage higher oil prices while trying to keep its budget under control.<\/p> <div>\n<\/div>\n<p>Vietnam extended a suspension of fuel taxes to ease pressure on domestic prices. Jet fuel shortages have led to flight cuts. Tourism makes up nearly 8% of Vietnam\u2019s gross domestic product \u2014 the nation\u2019s total output of goods and services \u2014 so that affects the entire economy.<\/p>\n<p>\u201cBusiness is not good right now,\u201d said Hanoi-based tour guide Nguyen Manh Thang. \u201cThere are already fewer tourists.\u201d<\/p>\n<p>Fuel shortages have pushed cash-strapped countries like Pakistan and Bangladesh to buy oil and gas at current market prices, which are often higher and more volatile than long-term contracts. This raises import costs and adds to pressure on their already limited foreign exchange reserves.<\/p><p>Read more <a href=\"https:\/\/siliconvalleymovingpost.com\/?p=4734\">Trump floats temporary gas tax halt as pump prices soar<\/a><\/p>\n<p>Governments can keep costly fuel subsidies by cutting spending from other priorities like welfare, or borrow more and risk higher inflation, said Endut in Kuala Lumpur. Alternatively, they can reduce subsidies and pass higher costs on to consumers, risking angering voters.<\/p>\n<p>Once subsidies are exhausted and inflation starts to rise, countries could face what he called a \u201cfiscal time bomb.\u201d<\/p>\n<h4>Vulnerable Asia will not see immediate relief<\/h4>\n<p>The war\u2019s eventual end won\u2019t bring quick respite to Asia.<\/p>\n<p>The global oil and gas trade will not bounce back right away, and it will take time to restart production, said Gross with the Brookings Institution. Repairing damaged infrastructure, restarting facilities and allowing for transport time from the Middle East to final markets will take weeks or even months.<\/p>\n<p>Europe will feel a similar impact to Asia, but with about a four-week lag, experts say.<\/p>\n<p>Americans are also feeling the pinch as gas prices spike across the U.S. But Southeast Asia is currently the \u201cbiggest pain point,\u201d said Henning Gloystein of the Eurasia Group consultancy firm.<\/p>\n<p>\u201cThis fuel shortage situation is going to get worse,\u201d he said.<\/p>\n<p>In Africa, higher energy and import costs are similarly straining budgets, widening deficits and driving up inflation. The war is also taking a toll on Latin America and the Caribbean, where growth is projected to slow slightly.<\/p>\n<p>The complex disruptions across global supply chains will continue to have broader impacts, warned Ted Krantz, CEO of supply chain risk firm Interos.ai.<\/p>\n<p>The crisis also highlights the fragility of Asia\u2019s growing middle class, said Maria Monica Wihardja of the Singapore-based ISEAS-Yusof Ishak Institute, with many people at risk of slipping back into poverty.<\/p>\n<p>The energy shock will reshape Southeast Asia\u2019s economies over time, she said, including shifts in job markets and how countries plan for future energy crises.<\/p>\n<p>Countries are already debating and implementing longer-term solutions, like diversifying fossil fuel suppliers, developing nuclear energy and renewables like solar.<\/p>\n<p>The war is making geopolitical risk central to the economic outlook of Southeast Asia and directly slowing regional growth, said Albert Park of the Asian Development Bank.<\/p>\n<p>\u201cThe longer it lasts, the larger those negative effects would be,\u201d he said<\/p>\n<p><em>Ghosal reported from Hanoi, Vietnam.<\/em><\/p>\n<p><em>The Associated Press\u2019 climate and environmental coverage receives financial support from multiple private foundations. The AP is solely responsible for all content. Find AP\u2019s standards for working with philanthropies, a list of supporters and funded coverage areas at AP.org.<\/em><\/p><p>Read more <a href=\"https:\/\/siliconvalleymovingpost.com\/?p=4732\">Florida AG says surrogacy is human trafficking, with big implications for families<\/a><\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>Asia\u2019s initial buffers against the Iran war\u2019s energy shock are fraying as a second wave of impacts hits.<\/p>\n","protected":false},"author":1,"featured_media":4741,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-4747","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-world-news"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Asia braces for a second wave of energy shocks from the Iran war - 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