Asia's Energy Crisis Spirals as Red Sea Blockade Threatens Oil Supplies

The energy crisis in Asia is worsening due to another maritime chokepoint in the Middle East being blockaded. Yemen's Houthis have launched a blockade of Saudi Arabian shipping passing through the Bab al-Mandab strait, which forms the southern entrance to the Red Sea. This has left only the Suez canal completely open for the free movement of Gulf oil.

Countries like Japan, the Philippines, Thailand, and South Korea, which rely on Middle East oil for up to 90% of their imports, are scrambling to secure supplies. They're now 'scraping at the bottom of the barrel' in terms of global reserve capacity, with little inventory left.

Japan is already spending billions on fuel subsidies to keep the cost of petroleum down, but this has hit government budgets hard. Some countries have responded by extending fuel tax cuts and bolstering their strategic reserves of oil and gas.