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The Philippines just became the first country to formally declare a national energy emergency over the Iran war, and the scenes on the ground look like something out of the 1970s.
President Ferdinand ‘Bongbong’ Marcos Jr. declared the emergency on March 24 after officials warned of “an imminent danger of a critically low energy supply.” The country’s fuel reserves had dropped from 55–57 days to 45 days in less than a month.
The government began emergency fuel purchases and cracked down on hoarding, and is now asking Washington for permission to buy oil from sanctioned countries, possibly including Iran and Venezuela. The Philippine ambassador to Washington told Reuters the effort was a “work in progress.” (1)
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The government is handing out 5,000 pesos — roughly $83 — to motorcycle taxi drivers and offering free bus rides to students. In an interview with Bloomberg Television, Marcos said grounding commercial flights is a “distinct possibility,” noting that several countries have already told Philippine airlines they cannot fuel their aircraft. (2)
Energy Secretary Sharon Garin said the country would “temporarily” lean even harder on coal — which already generates about 60% of Philippine electricity — and could ramp up output as early as April 1. Indonesia has assured Manila there will be no limits on coal orders.
The Philippines isn’t alone. Across the Asia-Pacific, the Strait of Hormuz crisis is forcing governments into emergency measures not seen in decades.
In South Korea, the government imposed a fuel price cap for the first time in roughly 30 years and launched a 100 trillion won ($66.5 billion) market stabilization program, with another 25 trillion won emergency budget heading to Cabinet on March 31. The country imports about 70% of its crude oil and 20% of its natural gas from the Middle East, and the prime minister warned of “worst-case scenarios” if the conflict drags on. (3)
The rationing is already down to the details. Public sector vehicles are now banned from the road one day a week based on the last digit of their license plates. About 1.5 million vehicles are affected. (4)
Samsung employees face parking restrictions on days matching their plate numbers. KB Financial and Hyundai told employees at their subsidiaries not to drive to work. The government cut natural gas power generation by 20%, let coal-fired power plants run at full capacity and is rushing to restart nuclear reactors. (5)
Experts warn of an “April supply crisis” — a chemical shortage could shut down production of plastic food packaging, including snack and noodle containers.
Meanwhile, dozens of Buddhist monks from Seoul’s Jogye Order marched to the U.S. embassy to protest the war, with 26 performing full-body prostrations along the route. (6)
Hundreds of millions of people in India cook with gas — liquefied petroleum gas, or LPG. More than half of it is shipped through Hormuz. (7) When the strait closed, panic buying kicked in within days. Residents in multiple cities lined up at 3 a.m. for gas cylinders. (8) Restaurants in Jaipur pulled samosas off menus. In Mumbai and Delhi, dosas disappeared from restaurant kitchens. A crematorium in Pune suspended gas-based cremations. (9) Low-income households reverted to firewood. The government declared an emergency and ramped up domestic LPG production 28% in five days. (10)
Japan released 80 million barrels from strategic reserves — the largest release since the system was created in the 1970s. (11) It covers roughly 45 days. Tokyo is pressing the International Energy Agency to unlock more reserves, (14) and at least one major refinery has canceled fuel exports to prioritize domestic supply. With more than 90% of Japan’s crude imports coming from the Middle East, analysts warn the reserves won’t last if the crisis drags on.
New Zealand unveiled a four-phase fuel rationing plan resembling its former Covid alert levels. (12) China and Thailand both banned fuel exports to hoard domestic supply.
Iran is now selectively allowing allied nations — China, Russia, India, Iraq, Pakistan, Malaysia and Thailand — to transit the strait, while charging tolls in yuan. (13) The Philippines, a U.S. treaty ally, is not on that list.
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President Trump has claimed the Hormuz closure “doesn’t really affect” the United States. (15)
“It insulates us in the sense that we’re not going to have a hard time finding supply, but the prices are global, so prices go up anyway,” Abhi Rajendran, director of oil markets research at Energy Intelligence, told FactCheck.org.
The national average for a gallon of regular gas hit $3.98 as of late March, according to AAA (16) — up more than a dollar since January. In Los Angeles County, the average reached $5.97 on March 28, up $1.28 from a month ago. (17) Diesel has already topped $5 a gallon nationwide, and that’s the price that ripples through everything — it powers the trucks, trains and farm equipment behind every product on every shelf.
If crude oil averages $110 per barrel, gas prices could peak at $4.36 a gallon by May — wiping out most or all of the larger tax refunds many households were expecting this season, according to the Stanford Institute for Economic Policy Research. Black Rock’s Larry Fink broke down a nightmare scenario of the war driving crude oil prices past $150 per barrel for years.
The cost of jet fuel is up roughly 85%, hitting anyone booking spring break or summer flights. (19) About one-third of globally traded fertilizer transits the strait. (20) That cost will show up in grocery aisles months from now. And Americans use more than four times as much new plastic as the global average, leaving households more vulnerable when plastic supply chains break down.
At the CERAWeek energy conference in Houston this week, Shell CEO Wael Sawan warned that fuel shortages spreading across Asia would reach Europe by April. (18) Energy veteran Paul Sankey compared the situation to the 1973 Arab oil embargo — the worst disruption he’s seen in a career that began at the IEA in 1990.
No. America produces more oil than any country on earth and has abundant natural gas. It’s not facing the existential supply crisis forcing the Philippines to uncap coal plants, South Korea to restart mothballed nuclear reactors, or India to hand out kerosene rations. The lights will stay on.
But that distinction is cold comfort at $4 a gallon — or $6 in California. The crisis hitting America isn’t about keeping the lights on. It’s about the price of everything, from gas to groceries to flights, being set by a global market that just lost a fifth of its supply.
The coal comeback is Asia’s story. The inflation shockwave is everyone’s. And every week the strait stays closed, that wave gets harder to outrun.
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We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
Reuters (1); Bloomberg (2); CNBC (3, 18); Anadolu Agency (4); Seoul Economic Daily (5); Yonhap News Agency (6); NPR (7); CNN (8, 13); Mongabay India (9); Press Information Bureau, Government of India (10); Japan Times (11, 14); RNZ (12); FactCheck.org (15); AAA (16); MyNewsLA (17); Time (19); Atlantic Council (20)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.