The Digester
general

Asia to bear worst economic fallout from US war on Iran

US and Israeli attacks on Iran and Iran's closure of the Strait of Hormuz have driven sharp rises in oil and gas prices and threaten Asia's energy supplies, industrial chains, and financial markets, with Japan likely to be hit harder than China.

Mar 28th 2026 · World

Insights

  • About 80% of Asia's energy imports pass through the Strait of Hormuz now effectively closed by Iran.
  • Crude oil prices rose nearly 40% between February and March.
  • LNG prices for shipments to Asia increased by almost two thirds according to the World Bank.
  • Disruptions extend beyond fuel to petrochemicals, manufacturing supply chains, transport networks, and financial markets.
  • Japan is likely to suffer more economic harm than China, which could gain a relative advantage in the crisis.

Sources