Non-Rich Asian States, Hit Hardest By Iran Crisis, Ration Energy

These wealthier countries have the fiscal capacity to maintain strategic energy reserves, providing them with temporary relief from disruption. Japan and South Korea, for example, have both initiated record-breaking releases from their state oil reserves since the start of the Iran war.

But with the exception of China, which has huge stockpiles of oil and LNG as well as robust domestic energy supply, these reserves are not designed to offset prolonged disruptions. Japan and South Korea's national stockpiles only hold enough oil for around 200 days.

Faced with tightening supplies and rising prices, many Asian governments have moved quickly to curb energy demand. One of the most immediate responses has been to limit mobility. The Philippines, Pakistan and Sri Lanka have all introduced four-day working weeks or have extended public holidays to cut commuting and fuel use.

Pakistan has also introduced hybrid working arrangements for public-sector employees, encouraging remote work to reduce transport demand. Education systems have been similarly affected. Bangladesh brought forward Ramadan holidays in universities, while Pakistan closed schools for two weeks from March 10 and shifted higher education online.

In some cases, governments have introduced more direct restrictions. Myanmar's military leaders have imposed fuel rationing and have restricted private vehicle use to alternating days based on license plate numbers.

Other interventions have focused on managing demand in less disruptive ways. Thailand, for example, has raised recommended air-conditioning temperatures to 27°C and is encouraging energy-efficient workplace practices such as replacing suits with short-sleeved shirts.

Some Asian governments have turned to subsidies to shield households and businesses from rising energy costs. Indonesia has allocated tens of billions of US dollars to maintain affordable fuel and electricity prices, while Thailand has capped cooking gas prices and promoted alternative fuels such as biodiesel.

However, subsidies are proving difficult to sustain. For lower-income countries in particular, fiscal constraints limit how long such support can be maintained. Pakistan initially introduced targeted subsidies for farmers and the transport sector, but has been forced to scale them back as the crisis has continued.

Perhaps the most consequential response has been in Asia's power sector. As energy supplies have tightened and prices surged, several Asian countries have reverted to coal – a fuel many nations had been phasing out.

Thailand has restarted two decommissioned units at the Mae Moh coal-fired power plant, while South Korea and Japan have lifted restrictions on coal generation to allow older plants to operate at higher capacity.