Asia's Energy Choke Points Risk Global Trade Disruption

Asia's energy infrastructure is at risk of being severely disrupted due to its reliance on vulnerable choke points. The Strait of Hormuz, a critical waterway in the Middle East, has already shown how quickly an energy disruption can spread globally.

In March 2026, the closure of the Strait of Hormuz caused a significant disruption in global liquefied natural gas (LNG) trade, impacting almost 20% of the world's imports. Although traffic partially recovered in June, renewed fighting restricted the waterway again.

Asia is particularly exposed to these disruptions, with LNG passing through the Strait accounting for 27% of its regional imports in 2025 compared to just 7% for Europe. Disruptions can have far-reaching effects on electricity, transport, manufacturing, food prices, and household budgets.