Asia is at the center of a new energy warning after the US imposed its own blockade on shipping through the Strait of Hormuz following the collapse of talks with Iran at the weekend. A recent report from Japanese investment bank Nomura says the region is among the most exposed if passage through the Strait of Hormuz is further restricted. The risk is greatest for net energy importers that depend heavily on Middle Eastern supplies.
Who is most exposed
Nomura names Thailand, India, Indonesia, the Philippines, Germany, Italy and the United Kingdom among the most vulnerable net energy importers if shipping disruption deepens. The report says Asian economies, excluding China, are the regions most exposed to tensions in the Persian Gulf, followed by Europe. It also says Asian economies are the primary destination for cargo passing through the Strait of Hormuz, placing the region directly in the path of any supply shock.
Within Asia, the pressure is uneven but broad. Nomura says more than 90 per cent of the crude oil imported by Japan and the Philippines comes from the Middle East, while 60 per cent of India’s liquefied natural gas supplies are sourced from the region. That concentration leaves those economies highly exposed to disruptions in the flow of oil and gas.
Why the Strait of Hormuz matters
The Strait of Hormuz is one of the world’s most critical choke points for energy supplies, and the latest US move raises the stakes for shipping across that route. The report says the impact would be more limited for major economies such as the United States and China, as well as for Canada, Norway, Spain, South Korea, Malaysia and Singapore. Even so, the wider regional effect could still be significant if market participants begin pricing in prolonged disruption.
Energy World Mag, an energy-focused data platform, said: “Over 97 per cent of Singapore’s energy comes from fossil fuels, leaving the country with no alternative if gas or oil imports get disrupted. ” That assessment highlights how dependent even diversified economies remain on imported fossil fuels, especially when maritime routes are under pressure.
Immediate market pressure
The Nomura report does not forecast a single outcome, but it makes clear that supply concentration is now the central concern. In Asia, the combination of heavy import dependence and proximity to the main cargo route through the Persian Gulf leaves several economies more vulnerable than others. The keyword asia captures the core of the risk: this is not a distant shock, but a direct exposure for fuel-importing states across the region.
For now, the key question is how long restrictions on shipping may last and whether the disruption remains limited or expands. If the blockade tightens further, asia could face higher energy costs, tighter supply conditions and renewed pressure on import-dependent economies. The coming days will show whether the strain stays localized or spreads more widely through global energy markets.
