The Strait of Hormuz crisis exposed Asia’s dependence on Middle East energy imports, with over 80% of oil and gas shipments through the waterway destined for China, India, Japan, and South Korea. The conflict demonstrated how easily Iran could threaten this strategic passage, through which roughly 20% of global oil trade normally flows. Despite oil prices surging to $126 per barrel, strategic stockpiles and increased production helped avoid the catastrophic shortages analysts had predicted. OPEC has lost its role as global oil market manager, with China now filling that void by drawing on its huge reserves to keep oil available for other economies. Facing the prospect of prolonged strait closures, Asian countries are now diversifying their energy sources by investing in pipelines, ports, and gas partnerships outside the Middle East.
Source: Read the original article
