US-Iran conflict triggers energy shock that hits Asia and tests globalization

Insights

• Escalation between the United States and Iran has disrupted oil and gas flows and pushed up global energy prices.
• Asian manufacturers and consumers are among the first to feel the shock through higher fuel costs and supply delays.
• The Philippines has declared an energy emergency amid fuel shortages and grid stress.
• Governments may increase short-term coal use to secure power, risking slower emissions reductions.
• Middle powers are accelerating efforts to diversify security and supply ties to reduce dependence on the United States for defense and on China for goods.
• Diplomatic moves such as the French president's tour of Japan and South Korea signal European engagement with Asian partners on security and supply chain resilience.