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U.S.-Iran conflict raises risk of long-lasting Asian oil shock
An analyst warned Asia’s reliance on Middle East crude could make any supply disruption from the Strait of Hormuz and possible Bab el-Mandeb blockage persist for years or even decades.
The U.S.-Iran conflict is raising the risk of a prolonged energy shock for oil-importing nations in Asia, with the effect potentially lasting years or even decades, according to energy analyst Vandana Hari of Vanda Insight speaking at a Bloomberg event in Singapore.
Hari warned that Asia’s growing dependence on oil imports creates a vulnerability to geopolitics, saying the current period of instability could remain in place for “decades, definitely years.”
The coverage links the threat to transport chokepoints in the region, noting that the Strait of Hormuz is shut while the Bab el-Mandeb Strait is described as apparently close to following that path.
It also cites reports that the Yemeni Houthis have signaled they will blockade the waterway, with Reuters described as reporting three loaded tankers making U-turns in the Red Sea, and it adds that rerouted voyages through alternatives like the Suez Canal could mean longer journeys and higher oil costs.