Asia ‘scraping the bottom of the barrel’ as Red Sea oil blockade worsens energy crisis
Asian economies are facing a potential energy crisis as Houthi blockades in the Red Sea disrupt oil shipping routes. Countries heavily reliant on Middle Eastern oil, such as Japan and the Philippines, are struggling with rising costs and dwindling reserves.
Why it matters
The disruption of critical maritime chokepoints threatens global energy security and could lead to increased inflation and economic instability across Asia.
A Philippines Jeepney driver refuels his vehicle in Manila. The Houthis have blocked a crucial Red Sea shipping route that will cause fresh energy headaches for Asian economies./Getty Images A Philippines Jeepney driver refuels his vehicle in Manila. The Houthis have blocked a crucial Red Sea shipping route that will cause fresh energy headaches for Asian economies./Getty Images Asia Pacific Analysis Asia ‘scraping the bottom of the barrel’ as Red Sea oil blockade worsens energy crisis Jonathan Yerushalmy The Houthi threat to Saudi oil exports comes as Japan, South Korea and the Philippines are still reeling from the closure of the strait of Hormuz
Governments in Asia are scrambling to avoid their second major energy crisis in six months, as another maritime chokepoint in the Middle East faces a violent blockade, leaving only the Suez canal completely open for the free movement of gulf oil.
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