Facing mounting economic and livelihood pressures from shipping disruptions in the Strait of Hormuz, several Asian countries have taken targeted measures to stabilize fuel prices and secure energy supplies.
Iran initially restricted navigation through the Strait of Hormuz as part of its response to U.S. and Israeli attacks. On Sunday, U.S. President Donald Trump announced the U.S. Navy would also begin blocking ships trying to enter or leave the Strait of Hormuz, after peace talks with Iran failed to produce a deal.
The blockade of this vital global energy route has driven up oil and gas prices worldwide.
Vietnam decided to extend the suspension of taxes on fuels to shield households and businesses from rising oil costs. On Sunday, the National Assembly, the country's lawmaking body, announced that the tax suspension, previously scheduled to end on April 15, will be extended until the end of June.
The country, which has extremely limited strategic crude oil reserves and relies heavily on imports, is facing significant pressure.
According to a report by Maybank Investment Bank, about 88 percent of Vietnam's crude oil imports come from Gulf countries.
The impact has already rippled through the economy, with railway passenger fares rising 3 percent on March 26, several airlines hiking ticket prices and cutting flights since April.
Amid surging transportation costs, the country's consumer price index rose by 4.65 percent year on year in March.
On the same day, the Republic of Korea (ROK) decided to maintain its current emergency response system as U.S.-Iran negotiations have yielded no agreement.
The ROK depends heavily on imported energy, with roughly 70 percent of its petroleum and 20 percent of its liquefied natural gas sourced from the Middle East.
The government activated an emergency response on March 25 and formed dedicated task groups to handle the situation.
Japan, meanwhile, is tapping into its strategic reserves while grappling with shortages of critical raw materials. The government announced plans to release a second batch of oil reserves in early May, enough to cover 20 days of domestic needs.
This follows a record first release on March 16 of about 80 million barrels, equivalent to about 45 days of consumption.
However, the country now faces a serious challenge in the medical sector, in part due to the tight supply of naphtha, a crude oil-derived ingredient that is key to some medical consumables, which are expected to experience possible shortages from mid-April to around August.
Asian countries take action to ease economic strain from Hormuz Strait disruptions
