From the boardrooms of Asia's energy ministries to factory floors and office towers across the region, the reverberations of the US-Israel war on Iran are now impossible to ignore. What began as a military campaign in the Persian Gulf has morphed into something far more consequential for billions of people: a crisis of supply that reaches directly into petrol tanks and power grids from Tokyo to Manila.
The Strait of Hormuz, a vital maritime choke point for global energy trade, has experienced ongoing geopolitical and economic disruption since 28 February 2026, following joint military strikes by the United States and Israel on Iran. Tanker traffic dropped first by approximately 70% and over 150 ships anchored outside the strait to avoid risks, and soon traffic went to about zero. The numbers are staggering. About 20% of the world's oil supply has been disrupted for nine days now as tanker traffic through the Strait of Hormuz remains at a standstill.
Asia, thirsty for energy and far from the negotiating tables of Washington and Jerusalem, faces an acute crisis. Traffic through the critical Strait has been severely disrupted as oil shippers fear attacks by Iran, keeping ships at anchor. About 20% of global petroleum consumption was exported through the narrow waterway prior to the war. Most Asian nations depend on imported oil. Even Indonesia and Malaysia, which produce their own supplies, must source significant volumes from the Gulf. When that flow stops, every government in the region feels the squeeze within days.
Governments have responded with remarkable speed, ordering their workforces home to preserve fuel. Thailand's government declared that public sector employees not involved in frontline service delivery must work from home. Air conditioning thermostats were set to 26 degrees Celsius, and workers were encouraged to use stairs instead of lifts. In the Philippines, public sector employees now work four days a week from the office, with agencies implementing either a common work-from-home day or compressing the work week. The measures include virtual meetings whenever possible, air conditioning set to 24 degrees, and optimised travel routes for necessary journeys.
Pakistan's Prime Minister Shehbaz Sharif announced mandatory work-from-home for half of government sector workers and strongly suggested private companies follow suit. Universities and higher education institutions have moved classes online. Vietnam's Ministry of Industry and Trade has urged citizens to work remotely where possible and ride bicycles instead of using powered vehicles. Each nation, in its own way, is calculating the mathematics of scarcity: how much fuel can we save by keeping people at home?
The worry beneath these measures is palpable. Several governments across Asia have warned that fuel shortages could disrupt electricity supply. Data centre operators, which keep the digital infrastructure of the modern economy running, prepare for power cuts by installing diesel generators, but few stockpile more than a few days' worth of fuel. If the Strait remains closed for weeks rather than days, the implications for internet reliability, financial transactions and communications networks ripple outward in ways no one can fully predict.
Australia, meanwhile, has taken a different approach, deploying military assets to help defend the Gulf states where its citizens live and work. There are around 115,000 Australians in the Middle East – around 24,000 in the UAE. Helping Australians means also helping the UAE and other Gulf nations to defend themselves. On 10 March, his government ordered the deployment of 85 personnel, a Boeing E-7 Wedgetail and stocks of MIM-120C-7 AMRAAM missiles to the United Arab Emirates to defend the Gulf states on the request of the UAE.
The E-7A Wedgetail and supporting Australian Defence Force personnel will be deployed for an initial four weeks in support of the collective self-defence of Gulf nations. The Albanese Government has been clear that we are not taking offensive action against Iran and we have been clear that we are not deploying Australian troops on the ground in Iran.
The global energy market faces a watershed moment. Oil prices surged above $100 per barrel and briefly approached $120 as traders priced in the risk of a major supply shock. Higher oil prices quickly feed through the global economy. Economists warn that sustained prices above $100 could increase inflation and slow economic growth. For Asia, which imports vast quantities of energy just to keep its economies functioning, the closure of Hormuz is not abstract geopolitics. It is real, it is immediate, and it demands action at every level of government and commerce.