Three months after Iran’s war closed the Strait of Hormuz, the chokepoint’s shutdown is turning price spikes into genuine shortages. The strait handled about 25% of global seaborne crude and 20% of LNG; its loss now starves Asia of oil, gas and downstream products. IMF director Krishna Srinivasan warned the squeeze will cut output, lift unemployment and curb growth, and eroding trade balances across the region.

Japan’s crude imports fell 67% in April, while Singapore, which gets 95% of its power from gas, imposed sweeping conservation rules. Wealthier buyers tap strategic reserves, but developing economies scramble for alternatives. In India, LPG shortages have forced restaurants to close and small firms to halt operations, amplifying a broader economic shock, and deepening energy insecurity for households.

Fertiliser producers in the Persian Gulf, supplying over a third of world urea, face idle plants and raw‑material backlogs, pushing urea prices up 80% since February. Helium, once 33% sourced from Qatar, now commands double‑digit premiums, squeezing Indian medical labs. The cascading shortages in naphtha and LPG underline how a single maritime blockade can rip through global supply chains, hitting the most vulnerable economies first, pressuring policymakers to seek new routes.