How Asia’s biggest nations are riding out the energy shock

Subscribe to enjoy similar stories.When the war in Iran started nearly two months ago, countries in Asia—which receive more than 80% of the oil and liquefied natural gas delivered through the Strait of Hormuz—were among the most exposed to the energy shock.But now, a combination of deep reserves, aggressive energy conservation efforts and savvy diplomatic efforts have allowed the deepest-pocketed of them to weather the blow—at least for now.They rushed to locate energy outside the Middle East, including the U.S. and Russia, often paying top dollar on the spot markets.

Countries such as South Korea barred companies from stockpiling certain petrochemical feedstocks to stabilize national supply. Japan just pledged to release from state reserves 50 million plastic gloves to medical institutions facing shortages.These efforts show that countries, particularly the wealthy and powerful ones, are able to shield their economies from the worst of an energy shock, at least in the short term.

It could leave them more resilient when the crisis ends.Even South Korea, whose leader had called the Middle East energy crunch a “war for people’s livelihoods,” said it has managed to secure its energy supply to 80% of normal import levels, envisioning no need to touch the country’s strategic reserves until June at the earliest.Such success could be fleeting. Should the latest talks between the Trump administration and Iran break down, a protracted stretch of limited or no supply from Persian Gulf nations will eventually hurt Asia’s biggest economies.On Monday, Chinese leader Xi Jinping, in a phone call with Saudi Crown Prince Mohammed bin Salman, called for an “immediate and comprehensive” cease-fire to restore safe transit through the Gulf,