Based on reports from March 2026, the de facto closure of the Strait of Hormuz—the world’s most critical energy artery carrying roughly 20%–31% of seaborne crude and 20% of LNG—has created the largest energy supply disruption in history. The hardest-hit countries are concentrated in Asia, which receives the majority of exports passing through this checkpoint, and in South Asia, where high energy dependence clashes with limited financial resources.
Hardest Hit Countries & Regions (March 2026):
- India: Faces the largest combined exposure due to its heavy reliance on Middle East oil (about 60% of imports) and LNG (over half). India also faces severe constraints on liquefied petroleum gas (LPG) for cooking, of which 90% passes through the Strait.
- Pakistan and Bangladesh: Considered the most vulnerable due to high dependence on LNG from the Gulf (99% and 72% respectively) and limited storage flexibility. Both countries have had to introduce measures such as fuel rationing and closing institutions to conserve energy.
- Japan: Highly vulnerable, as 75% of its oil imports originate in the Gulf and pass through the Strait. The country faces extreme risks due to limited inventories, prompting government efforts to release oil reserves and reinstate subsidies.
- South Korea: Imports roughly 70% of its oil from the Middle East, with 207 days of reserves that are being drained. It has implemented national price caps on fuel for the first time in 30 years.
- Thailand and Philippines: High import reliance makes them vulnerable to skyrocketing oil prices, with Thailand facing severe economic impact due to large net oil imports (4.7% of GDP).
- Qatar, UAE, Saudi Arabia, Kuwait, and Iraq: As producers, they are heavily impacted by their inability to load oil onto tankers, leading to “catastrophic” production cuts (55–65% reduction in some areas) as storage tanks reach full capacity.
- Singapore: Identified as highly vulnerable due to its almost complete reliance on imported fossil fuels (over 97%) for energy production, with 100% of its natural gas imported.
Key Impacts:
- Energy Costs: Oil prices surged past $100 per barrel, with some warnings of $200+ if the block persists.
- Shortages & Rationing: Countries across South and Southeast Asia are experiencing severe shortages, leading to rationing, fuel queues, and power blackouts.
- Shutdowns: Qatar and the UAE halted significant LNG production due to damage from attacks on facilities, notably Ras Laffan.
- Global Logistics: Commercial shipping through the area has effectively halted, impacting global trade beyond just energy, including petrochemicals, fertilizers, and plastics.
Source
Google AI Mode
Prompt: Which countries are hardest hit by the blockade of the world’s largest energy artery?
Personal Remarks
To ensure security of supply, EU countries are required to maintain emergency oil stocks equivalent to at least 90 days of net imports.
Europe relies a lot on Norway for fossil imports.