Economic Times4/20/2026EnergyIndia
Strait of Hormuz Closure Deepens Asia's Energy Crisis as Oil Supply Chains Buckle
Physical oil prices reflect severe supply crunch while paper markets maintain optimism for quick conflict resolution
Quick Look
- The effective closure of the Strait of Hormuz since U.S. and Israel attacked Iran on February 28 has created a deepening energy crisis in Asia, which received 80% of shipments through the waterway.
- While crude futures have traded on optimism the conflict will be short-lived, physical oil markets show severe supply stress—jet fuel in Singapore has doubled to $204.13/barrel and gasoil up 59%.
- Asia's seaborne crude imports are expected to drop to 20.62 million bpd in April from 26.76 million bpd pre-conflict, with refinery processing rates likely to be cut in coming weeks.
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The effective closure of the Strait of Hormuz since U.S. and Israel attacked Iran on February 28 has created a deepening energy crisis in Asia, which received 80% of shipments through the waterway. While crude futures have traded on optimism the conflict will be short-lived, physical oil markets show severe supply stress—jet fuel in Singapore has doubled to $204.13/barrel and gasoil up 59%. Asia's seaborne crude imports are expected to drop to 20.62 million bpd in April from 26.76 million bpd pre-conflict, with refinery processing rates likely to be cut in coming weeks.
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This article was originally published by Economic Times.
