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Asia Fuel Crisis Deepens as Tankers Reroute Amid Middle East War

Bloomberg Markets •
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Asian energy buyers are outbidding rivals to secure fuel shipments as the Middle East war enters its second week. Five tankers carrying diesel and jet fuel that were headed west have reversed course to East Asia, according to ship-tracking data compiled by Bloomberg. Three shipments originated from India while two departed the Persian Gulf before the Strait of Hormuz effectively closed last week.

This redirection highlights how Asia's energy-importing region faces severe supply constraints. China has asked refiners to curb exports while long lines form at filling stations across the continent. Fuel prices have surged as processors reduce activity due to crude shortages, while Middle East refineries cut production as storage facilities reach capacity. Some Asian plants had already scheduled maintenance before the conflict began.

The supply crunch has created a perfect storm for Asian energy markets. Refineries typically purchase crude based on their turnaround schedules, making it difficult to quickly increase output when disruptions occur. With the Persian Gulf effectively cut off and alternative supplies being redirected, Asian buyers face mounting pressure to secure whatever fuel they can find, regardless of cost.