Asia's Energy Crisis Deepens as Houthi Blockade Hits Oil Supplies

Asia is facing another major energy crisis as Yemen's Houthis launched a blockade of Saudi Arabian shipping passing through the Bab al-Mandab strait, which forms the southern entrance to the Red Sea. This comes on the heels of Iran's effective closure of the Strait of Hormuz in March, which forced governments across the region to compete for dwindling supplies of Middle Eastern crude oil.

The blockade has left only the Suez canal completely open for the free movement of Gulf oil, but rerouting cargos through this route is costly and comes with logistical complications. The Houthi threat has inspired countries like Japan, South Korea, and India to bolster their strategic reserves of oil and gas, while some importers are looking farther afield for supplies.

Experts say governments in Asia have ignored the vulnerability of their energy systems for too long, and this crisis will force them to reckon with their supply chains and storage capacity. 'There's very little inventory now,' says Ahmed Helal from the Asia Group thinktank.