Israel-Iran conflict raises Asia's energy security fears over Strait of Hormuz risks
Escalating
conflict between Israel and Iran is raising fresh concerns over Asia's energy security, analysts said on Tuesday, with any disruption to oil flows through the Strait of Hormuz threatening to destabilise global markets.
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Roughly seventy per cent of Asia's crude oil and refined product imports pass through the narrow waterway, which lies adjacent to
Iran and connects the Persian Gulf to the Gulf of Oman. The strait remains one of the world's most critical maritime choke points, particularly for heavily import-dependent Asian economies.
The renewed anxiety came after US President
Donald Trump left the
Group of Seven (G7) summit in Canada a day early on Monday after calling for the evacuation of Tehran in a social media post – a move widely interpreted as a signal that hostilities between Israel and Iran could intensify further.
Trump had earlier suggested that Iran was open to de-escalation talks with
Israel , briefly cooling a sharp spike in oil prices. West Texas Intermediate crude dropped below US$70 on Monday, though it rebounded to US$73 on Tuesday, roughly 20 per cent higher than a month earlier.
02:48
Trump suggests Iran and Israel may need to 'fight it out' before deal
Trump suggests Iran and Israel may need to 'fight it out' before deal
'The potential closure of the Strait of Hormuz risks tipping oil markets into heavy undersupply, supporting prices and adding tension,' according to Janiv Shah, vice-president for oil markets at Rystad Energy. 'A blockade remains the key risk that could push markets into uncharted territory.'
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