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Asian economies on edge as Hormuz blockade threatens oil supply

Published on: June 23, 2025 6:26 PM

The Strait of Hormuz, a narrow but crucial maritime corridor, is under global focus as tensions escalate in the Middle East. Nearly 84% of oil passing through the strait is headed to Asia, putting countries like China, India, South Korea, and Japan at serious risk of fuel shortages if Iran enforces a blockade in response to recent US strikes.

According to the US Energy Information Administration (EIA), around 14.2 million barrels of crude oil and 5.9 million barrels of other petroleum products pass through Hormuz daily. This accounts for 20% of global oil production and includes nearly all crude exported by Gulf states such as Saudi Arabia, the UAE, Iraq, and Iran itself.

China is the largest consumer of oil via the Strait, importing about 5.4 million barrels per day. It heavily relies on Saudi Arabia and Iran for its energy needs. India follows, with 2.1 million barrels daily, though it has increased Russian imports in recent years to reduce dependency on Middle Eastern routes.

South Korea and Japan are equally vulnerable. South Korea imports nearly 1.7 million barrels daily through the strait, while Japan brings in 1.6 million. Both nations are reviewing emergency measures, including tapping into strategic reserves and adjusting shipping routes to minimize exposure.

Meanwhile, about 2 million barrels from Hormuz also go to other Asian countries, with smaller portions destined for Europe and the United States. While Saudi Arabia and the UAE can reroute limited quantities through alternate pipelines, their bypass capacity is just 2.6 million barrels per day—far less than needed to replace full Hormuz traffic.

In short, while some nations are preparing for disruptions, experts warn that no backup route can fully compensate for the loss of the strait. A full-scale blockade would deliver a severe blow to global energy markets, especially across Asia.

Filed Under: Business, World Tagged With: a narrow but crucial maritime corridor, Asian economies on edge as Hormuz blockade threatens oil supply, China, India, Japan, Latest, South Korea, Strait of Hormuz, under global focus as tensions escalate in the Middle East

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