Asia's Energy Crisis Exposes Fault Lines in Global System

The ongoing energy crisis in West Asia has exposed vulnerabilities in the global energy system. The International Energy Agency's (IEA) August Oil Market Report highlights that the shock is far from over, particularly for Asia.

Japan, which relied heavily on West Asian crude oil before the conflict, saw its dependence drop to 94%. Other countries like the Philippines, Vietnam, Thailand, and South Korea were even more reliant on these supplies, with percentages of 97%, 87%, 74%, and 69% respectively.

India imports around 60% of its liquefied petroleum gas (LPG) consumption, with a staggering 90% coming through the Strait of Hormuz. The crisis underscores the need for Asia to move beyond national reactions towards a coordinated energy security system.