Southeast Asia Faces Deepening Oil Crisis

Governments across Southeast Asia are implementing measures to mitigate energy shortages as the Strait of Hormuz remains closed to maritime traffic following the U.S.-Israeli war on Iran. On March 12, 2026, nations including the Philippines, Thailand, Vietnam, and Myanmar initiated policies such as reduced work weeks, work-from-home directives, and alternating driving days to conserve fuel.

The closure of the Strait of Hormuz, a critical chokepoint, has severely impacted oil and gas supplies to the region. In 2024, approximately 84% of crude oil and 83% of liquefied natural gas (LNG) transiting the Strait was destined for Asia. Countries like the Philippines, Thailand, Malaysia, and Brunei are particularly vulnerable, relying on imports for 60-95% of their crude supply. Even Indonesia, a significant oil producer, imports over one-third of its crude.

In response, governments are intervening in markets; Thailand has imposed a temporary price cap on diesel, and Vietnam is utilizing its fuel price stabilization fund. However, regional energy reserves are limited.

Vietnam's planned procurement of 4 million barrels of crude from non-Middle Eastern sources would cover only six days of consumption, with total reserves estimated at 20 days. Indonesia holds 21-23 days of fuel reserves, while Thailand has 65 days, with plans to secure an additional 30 days.

The Philippines maintains 50-60 days of reserves in commercial inventories.