The Israel‑Iran conflict has ripped Asia’s diesel market in two. Wealthier refiners such as China and South Korea trimmed exports after cutting run rates, leaving regional importers scrambling. Indonesia and the Philippines now face the sharpest shortfalls, while Brent futures surged past $126 a barrel, pushing diesel prices to multi‑year highs. Logistics firms report delayed shipments, raising concerns for supply‑chain resilience across the continent.

For richer economies the curbs created a buffer; commercial diesel inventories in China recently hit the highest level in nearly two years despite slower state‑owned refineries. By contrast, India’s road‑hauling sector confronts empty pumps, with truck owners reporting stranded vehicles in Odisha. The shortage fuels inflation spikes, exemplified by the Philippines’ 4.1% price rise in March. Vietnam’s Nghi Son refinery also struggles to secure feedstock.

Southeast Asian governments scramble for stop‑gaps: Indonesia fast‑tracks a 50% biofuel blend from palm oil, while Vietnam urges fuel‑saving measures and Thailand seeks borrowing to shield consumers. South Korea and Japan, despite lower refinery runs, rely on emergency stockpiles and may resume diesel exports next month. Japan’s plants operate at about 68% capacity. The regional market will stay tight through the summer harvest season.