Global Governments Scramble to Mitigate War-Driven Oil Price Spike

Global governments are taking steps to mitigate the economic impact of the escalating U.S.-Israeli war on Iran, which has driven oil prices up and caused share markets to plummet. In South Korea, President Lee Jae Myung announced plans to cap domestic fuel prices for the first time in nearly 30 years.

The country will also explore alternative energy sources beyond those shipped through the Strait of Hormuz and is prepared to expand its market-stabilisation programme by up to $67 billion if needed. In Japan, the government has instructed a national oil reserve storage site to prepare for a possible release of crude.

Details on when this release will happen are unclear. Meanwhile, Vietnam has announced plans to remove import tariffs on fuels until the end of April, and Indonesia will increase its allocation for fuel subsidies in its state budget. China has asked refiners to halt new fuel export contracts and try to cancel existing ones.

Bangladesh is taking more drastic measures by closing all universities and rationing fuel sales after panic buying led to stockpiling.