As the United States imposes restrictions on shipping through the Strait of Hormuz following the collapse of talks with Iran over the weekend, we look at how major economies in Asia and Europe could be affected by further restrictions on passage through one of the world’s most important energy supply points.
Who is most vulnerable in this energy crisis?
According to a recent report by the Japanese investment bank Nomura, the areas most exposed to tensions in the Persian Gulf are the Asian economies, excluding China, followed by Europe. The Asian economy is the primary destination for cargo passing through the Strait of Hormuz.
Among the most vulnerable net energy importers are Thailand, India, Indonesia, the Philippines, Germany, Italy and the United Kingdom.
The report said the impact would be smaller for major economies such as the US and China, as well as for Canada, Norway, Spain, South Korea, Malaysia and Singapore.
However, Energy World Mag, an energy-focused data platform, said: “More than 97 percent of Singapore’s energy comes from fossil fuels, leaving the country with no alternative if gas or oil imports are disrupted.”
What? How much do some of the affected economies depend on energy from the Middle East?
According to Nomura, more than 90 percent of Japan and the Philippines’ crude oil imports come from the Middle East, while 60 percent of India’s natural gas (LNG) is sourced from the region, leaving them exposed to concentration risks.
