Asia’s Ripple Effect: The Iran Conflict’s Impact from South Korea to Sri Lanka

The blockade of the Strait of Hormuz, triggered by the US and Israel’s military actions against Iran in late February, has created a ripple effect across Asian nations. With oil prices climbing and markets experiencing volatility, the world watches anxiously for the waterway’s reopening. This strait, vital for 20% of global oil transport, now sees only a few ships passing through daily, while attacks on regional energy infrastructure have exacerbated the crisis.

Asia’s Strain from a Distant Conflict

Over 90% of the oil and gas flowing through Hormuz is destined for Asian countries, making the region the hardest hit. To manage dwindling supplies, governments have implemented strict measures, such as remote work policies, shortened workweeks, and early university closures. Even China, which holds reserves matching three months of imports, is adjusting by slowing fuel price increases as citizens grapple with a 20% surge in costs.

Philippines: Drivers Bear the Brunt

In the Philippines, the crisis has forced a national energy emergency declaration. Jeepney drivers, a cornerstone of the country’s transport network, are among the most affected. Carlos Bragal Jr, a driver in Manila, described how his earnings dropped from 1,000 to 1,200 pesos ($16.60 to $19.92) for a 12-hour shift to as little as 200–500 pesos. “We had a good life. But now, we do not know what will happen to us in the next few weeks,” he said, warning that the situation could devastate his family.

“I have sent my daughters to school because of this job— one just graduated, the other is about to. If this continues, it will definitely kill us and our family.”

Manila has introduced a new initiative, offering compensation to over 1,000 drivers to