Iran war pushes countries into energy triage as they conserve power and curb soaring prices

Women wait to collect household cylinders of liquefied natural gas from an authorized dealer in Ahmedabad, India, Monday, March 16, 2026. (AP Photo/Ajit Solanki) Updated [hour]:[minute] [AMPM] [timezone], [monthFull] [day], [year] BANGKOK (AP) — The escalating war with Iran is pushing parts of the world into energy triage, forcing governments to choose where to cut demand or absorb costs, while prioritizing dwindling supplies.Asia is the most exposed since it relies heavily on imported fuel, much of it shipped through the now-blockedStrait of Hormuz. The narrow passage offshore from Iran is the main route for shipping a fifth of global trade in crude oil and liquified natural gas.Governments in the region are scrambling to adjust — tallying oil reserves, conserving energy, competing for supplies and trying to blunt prices. That brings difficult trade-offs: saving power may slow business activity. Prioritizing cooking gas for households can hurt restaurants and other businesses. Cooks at a restaurant prepare meals over a charcoal stove following a shortage of liquefied petroleum gas in Mumbai, India, Wednesday, March 11, 2026. (AP Photo/Rafiq Maqbool) Cooks at a restaurant prepare meals over a charcoal stove following a shortage of liquefied petroleum gas in Mumbai, India, Wednesday, March 11, 2026. (AP Photo/Rafiq Maqbool) Add AP News on Google Add AP News as your preferred source to see more of our stories on Google. Motorists wait behind a rope for their turn to get fuel at a pump, fearing a possible fuel shortage due to the Iran war, in Dhaka, Bangladesh, Sunday, March 8, 2026. (AP Photo/Mahmud Hossain Opu, File) Motorists wait behind a rope for their turn to get fuel at a pump, fearing a possible fuel shortage due to the Iran war, in Dhaka, Bangladesh, Sunday, March 8, 2026. (AP Photo/Mahmud Hossain Opu, File) Add AP News on Google Add AP News as your preferred source to see more of our stories on Google. Tricycle drivers prepare their documents to receive their cash assistance from the government to help in their livelihood as oil prices continue to rise on Tuesday, March 17, 2026, in Manila, Philippines. (AP Photo/Aaron Favila) Tricycle drivers prepare their documents to receive their cash assistance from the government to help in their livelihood as oil prices continue to rise on Tuesday, March 17, 2026, in Manila, Philippines. (AP Photo/Aaron Favila) Add AP News on Google Add AP News as your preferred source to see more of our stories on Google. “Even relatively modest constraints on energy use can create a drag on industrial activity,” said Linh Nguyen, with the consultancy Control Risks. She pointed to Vietnam’s energy-intensive export industries and warned that higher fuel costs or conservation measures could quickly raise production costs or slow factory output. Analysts warn the same hard choices could soon spread beyond Asia to fuel-importing economies in Africa and elsewhere as countries compete for scarce supplies.“The situation is common across the board,” said Putra Adhiguna of the Jakarta-based Energy Shift Institute. “There is no easy decision for the short term.” Southeast Asia is rationing scarce energyWith oil prices surging despite releases of some reserves, Southeast Asia is stretching dwindling energy reserves by urging households, businesses and government agencies to slash power use. In the Philippines, officials have switched to a four-day workweek to cut back on fuel consumption and reduce the government’s energy use by a fifth. Office have been told to switch off computers during lunch breaks and keep air conditioning no lower than 24°C (75°F). Vietnam has urged people to work from home. While in Thailand, the prime minister has even asked officials to take the stairs instead of elevators. A security guard walks along offices at the Metropolitan Manila Development Authority closed due to the implementation of four-day work week on March 13, 2026 in Pasig, Philippines. (AP Photo/Aaron Favilal) A security guard walks along offices at the Metropolitan Manila Development Authority closed due to the implementation of four-day work week on March 13, 2026 in Pasig, Philippines. (AP Photo/Aaron Favilal) Add AP News on Google Add AP News as your preferred source to see more of our stories on Google. Desks remain at an empty office at the Metropolitan Manila Development Authority closed due to the implementation of four-day work week on Friday, March 13, 2026 in Pasig, Philippines. (AP Photo/Aaron Favilal) Desks remain at an empty office at the Metropolitan Manila Development Authority closed due to the implementation of four-day work week on Friday, March 13, 2026 in Pasig, Philippines. (AP Photo/Aaron Favilal) Add AP News on Google Add AP News as your preferred source to see more of our stories on Google. But this comes at a cost. Dieu Linh, a vegetable seller in Hanoi, said even a 10% rise in fuel costs will eat into her thin margins. “If my costs go up by even a little, the profit is almost gone,” she said.At the same time, countries in the region are competing for limited supplies at higher costs. Vietnam has asked refineries and fuel distributors to keep fuel supplies high, while Thailand is stretching its roughly two-month oil reserve and seeking other domestic energy sources. Both are using price supports to shield households from rising costs.Thailand halted exports to protect its limited reserves, contributing to shortages that have closed nearly a third of Cambodia’s roughly 6,000 gas stations.East Asia searches for new energy suppliers and sourcesMore than 80% of the liquefied natural gas, or LNG, that passed the Hormuz" class="entity-link entity-location" data-entity-id="2456" data-entity-type="location">Strait of Hormuz in 2024 went to Asia, according to the U.S. Energy Information Administration, and much of it to Japan, South Korea and Taiwan. Japan’s first line of defense is its vast strategic oil stockpile, amounting to around 254 days’ worth of supplies. This system was set up after the shocks from the 1970s Arab oil crisis. Part of Eneos group’s Kashima oil refinery is seen as local residents try to catch fish at a wharf in Kamisu, east of Tokyo, Sunday, March 15, 2026.(AP Photo/Hiro Komae) Part of Eneos group’s Kashima oil refinery is seen as local residents try to catch fish at a wharf in Kamisu, east of Tokyo, Sunday, March 15, 2026.(AP Photo/Hiro Komae) Add AP News on Google Add AP News as your preferred source to see more of our stories on Google. Japan began releasing about 45 days’ worth of oil reserves this week to prevent fuel prices from surging as crude oil imports slow. It last released reserves after Russia’s invasion of Ukraine in 2022.This will help keep Japan’s energy-intensive industries running, from automobiles to steel manufacturing and heavy machinery. Companies like Toyota, Mitsubishi and Nippon Steel depend on steady fuel supplies.South Korea plans to release 22.46 million barrels from its reserves under the International Energy Agency ’s largest-ever coordinated stock draw.But analysts said that tapping reserves isn’t a longterm solution. A protester holds a sign against Donald Trump’s demands to multiple countries to send warships to keep the Hormuz" class="entity-link entity-location" data-entity-id="2456" data-entity-type="location">Strait of Hormuz open, near the U.S. Embassy in Seoul, South Korea, Monday, March 16, 2026. (AP Photo/Lee Jin-man) A protester holds a sign against Donald Trump’s demands to multiple countries to send warships to keep the Hormuz" class="entity-link entity-location" data-entity-id="2456" data-entity-type="location">Strait of Hormuz open, near the U.S. Embassy in Seoul, South Korea, Monday, March 16, 2026. (AP Photo/Lee Jin-man) Add AP News on Google Add AP News as your preferred source to see more of our stories on Google. It will give refineries “some buffer” against disruptions. But this does not increase a country’s overall supply unless it can buy oil released by other nations, said Muyu Xu of the energy consultancy Kpler. If the crisis drags on, crude oil shortages could return. The releases may keep refineries running for another few weeks, but companies may need to slow production if disruptions continue, she added. “The fundamental difficulties will not be solved by this action,” said Mika Ohbayashi of the Renewable Energy Institute in Japan, adding that renewable energy was a long-term solution but the Japanese government was uninterested.Japanese Prime Minister Sanae Takaichi is due to meet with U.S. President Donald Trump later this month and Japan’s plans to buy more American LNG and restart nuclear power plants are likely to be on the agenda, analysts say.Populous nations prioritize homes, but face price pinchIndia is prioritizing household needs for its limited supply of liquefied petroleum gas or LPG, which is used for cooking and to power cars.It has absorbed more than half of the increase driven by global market disruptions under a federal scheme to keep prices low for poor households, said Indian Petroleum Minister Hardeep Singh Puri.But shortages are already seeping into restaurants and hotels in the world’s second-largest LPG importer, as eateries shorten hours, close temporarily or trim long-simmered curries and deep-fried snacks from their menus. 1 of 7 | An empty liquefied petroleum gas cylinder is seen beside a temple while a customer waits at a depot for the cylinder to be refilled in Hyderabad, India, Wednesday, March 11, 2026. (AP Photo/Mahesh Kumar A.) 2 of 7 | A woman talks on mobile as she waits to collect household cylinder of liquefied natural gas from an authorized dealer in Ahmedabad, India, Monday, March 16, 2026. (AP Photo/Ajit Solanki) 3 of 7 | A worker distributes household liquefied petroleum gas cylinders to customers in Srinagar, Indian controlled Kashmir, Saturday, March 14, 2026. (AP Photo/Dar Yasin) 4 of 7 | A worker inspects liquefied petroleum gas cylinders, arranged for customer delivery at a distribution centre on the outskirts of Amritsar, India, Friday, March 13, 2026. (AP Photo/Prabhjot Gill) 5 of 7 | A staff writes on a ledger as workers unload cylinders of liquified natural gas for households at a distribution point, in Kolkata, India, Wednesday, March 11, 2026. (AP Photo/Bikas Das) 6 of 7 | Women wait to collect household cylinders of liquefied natural gas from an authorized dealer in Ahmedabad, India, Monday, March 16, 2026. (AP Photo/Ajit Solanki) 7 of 7 | People queue to collect household cylinders of liquefied natural gas from an authorized dealer on a roadside in Srinagar, Indian controlled Kashmir, Saturday, March 14, 2026. (AP Photo/Dar Yasin) 1 of 7 An empty liquefied petroleum gas cylinder is seen beside a temple while a customer waits at a depot for the cylinder to be refilled in Hyderabad, India, Wednesday, March 11, 2026. (AP Photo/Mahesh Kumar A.) Add AP News on Google Add AP News as your preferred source to see more of our stories on Google. 2 of 7 A woman talks on mobile as she waits to collect household cylinder of liquefied natural gas from an authorized dealer in Ahmedabad, India, Monday, March 16, 2026. (AP Photo/Ajit Solanki) Add AP News on Google Add AP News as your preferred source to see more of our stories on Google. 3 of 7 A worker distributes household liquefied petroleum gas cylinders to customers in Srinagar, Indian controlled Kashmir, Saturday, March 14, 2026. (AP Photo/Dar Yasin) Add AP News on Google Add AP News as your preferred source to see more of our stories on Google. 4 of 7 A worker inspects liquefied petroleum gas cylinders, arranged for customer delivery at a distribution centre on the outskirts of Amritsar, India, Friday, March 13, 2026. (AP Photo/Prabhjot Gill) Add AP News on Google Add AP News as your preferred source to see more of our stories on Google. 5 of 7 A staff writes on a ledger as workers unload cylinders of liquified natural gas for households at a distribution point, in Kolkata, India, Wednesday, March 11, 2026. (AP Photo/Bikas Das) Add AP News on Google Add AP News as your preferred source to see more of our stories on Google. 6 of 7 Women wait to collect household cylinders of liquefied natural gas from an authorized dealer in Ahmedabad, India, Monday, March 16, 2026. (AP Photo/Ajit Solanki) Add AP News on Google Add AP News as your preferred source to see more of our stories on Google. 7 of 7 People queue to collect household cylinders of liquefied natural gas from an authorized dealer on a roadside in Srinagar, Indian controlled Kashmir, Saturday, March 14, 2026. (AP Photo/Dar Yasin) Add AP News on Google Add AP News as your preferred source to see more of our stories on Google. The scale of demand in India, the world’s most populous nation, limits how long it can cap prices to shield consumers. The situation could worsen within a week if government subsidies lapse, said Duttatreya Das of the think tank Ember, noting gas supplies were the most immediate concern.“You can’t store a lot of gas,” Das said, adding that fertilizer factories and small industries will feel the pinch first. Liberia-flagged tanker Shenlong Suezmax, carrying crude oil from Saudi Arabia, that arrived clearing the Hormuz" class="entity-link entity-location" data-entity-id="2456" data-entity-type="location">Strait of Hormuz, is seen at the Mumbai Port in Mumbai, India, Thursday, March 12, 2026. (AP Photo/Rafiq Maqbool, File) Liberia-flagged tanker Shenlong Suezmax, carrying crude oil from Saudi Arabia, that arrived clearing the Hormuz" class="entity-link entity-location" data-entity-id="2456" data-entity-type="location">Strait of Hormuz, is seen at the Mumbai Port in Mumbai, India, Thursday, March 12, 2026. (AP Photo/Rafiq Maqbool, File) Add AP News on Google Add AP News as your preferred source to see more of our stories on Google. Indonesia, a country of 287 million people and Southeast Asia’s most populous nation, also faces hard choices. While the government has promised to maintain fuel prices throughout Eid al-Fitr, the Muslim holiday marking the end of the fasting month of Ramadan, Adhiguna of the Energy Shift Institute said there is “no clarity about what will happen after that,” adding that this implies fuel prices could increase. People carry their belongings as they arrive for a free bus trip to their hometowns to celebrate Eid-al Fitr, organized by the Jakarta provincial government in Jakarta, Indonesia, Tuesday, March 17, 2026. (AP Photo/Achmad Ibrahim) People carry their belongings as they arrive for a free bus trip to their hometowns to celebrate Eid-al Fitr, organized by the Jakarta provincial government in Jakarta, Indonesia, Tuesday, March 17, 2026. (AP Photo/Achmad Ibrahim) Add AP News on Google Add AP News as your preferred source to see more of our stories on Google. Bus crew wait for passengers as the mass exodus out of Jakarta and other major cities is underway ahead of Eid al-Fitr in Jakarta, Indonesia, Tuesday, March 17, 2026. (AP Photo/Dita Alangkara) Bus crew wait for passengers as the mass exodus out of Jakarta and other major cities is underway ahead of Eid al-Fitr in Jakarta, Indonesia, Tuesday, March 17, 2026. (AP Photo/Dita Alangkara) Add AP News on Google Add AP News as your preferred source to see more of our stories on Google. Thailand is also caught in a dilemma. If it ends subsidies that keep prices low, living costs will jump and that could spark a panic if reserves fall further, said Areeporn Asawinpongphan of the Thailand Development Research Institute.If the conflict continues, Indonesia will have to choose between keeping the subsides that protect customers or cutting funding to keep to budgetary limits. However, this could fuel inflation. Given Indonesia’s limited 20-day reserve, Adhiguna warned that price fluctuations in Indonesia’s fuel market will be swift.“It will eventually reach a breaking point,” Adhiguna said.Europe feels the squeeze, tooThe European Union is doubling down on its long-term clean energy strategy to cut consumption and rein in prices across the 27-nation bloc that have risen sharply since the war’s start. Officials met in Brussel this week, where they considered ways to improve the region’s energy security.“We are looking at how we can reduce people’s energy bills,” said European Commissioner for Energy Dan Jørgensen. “We are working on immediate measures to help businesses and our most vulnerable citizens.”___Ghosal reported from Hanoi, Vietnam. Associated Press writers Elaine Kurtenbach in Bangkok, Thailand, Sam McNeil in Brussels and Piyush Nagpal in New Delhi, India contributed to this report.___The Associated Press’ climate and environmental coverage receives financial support from multiple private foundations. The AP is solely responsible for all content. Find AP’s standards for working with philanthropies, a list of supporters and funded coverage areas at AP.org. Delgado covers climate and energy stories across Southeast Asia for The Associated Press. Ghosal covers the intersection of business and climate change in southeast Asia for The Associated Press. He is based out of Hanoi in Vietnam.