The war in the Middle East has triggered an energy crisis across Asia, forcing major economies to revert to coal as liquefied natural gas supplies plummet. Qatar Energy's shutdown of production, following Iranian attacks on energy installations, has removed about a fifth of global L.N.G. supply from the market.

With the Strait of Hormuz effectively closed, countries like Japan, Singapore, Thailand, and Bangladesh face severe shortages. These nations generate a third or more of their electricity from natural gas, creating an existential threat to their energy networks. Utilities are competing for remaining cargoes at record prices on the spot market while rationing energy and tapping state funds.

Analysts warn the disruptions will extend far beyond the current conflict. After Russia's 2022 invasion of Ukraine already dented confidence in L.N.G., the current crisis has exposed the vulnerability of relying on just two major producers. Thailand has ordered coal plants to operate at full capacity and is using energy-subsidy funds to absorb price shocks. The situation highlights the tension between energy security and environmental goals as Asian nations grapple with ballooning populations and economic growth driving more than half of global energy demand growth by 2050.