China offers to help Southeast Asia counter impact of Middle East war on energy supplies

China has offered to collaborate with Southeast Asian nations to ensure energy security amidst the ongoing conflict in the Middle East, which is impacting global oil and gas supplies. A Chinese foreign ministry spokesman stated China's readiness to strengthen cooperation and coordination to address these energy security issues. The offer comes as the conflict threatens to disrupt fertilizer production and shipping in the Gulf, particularly through the Strait of Hormuz, a critical hub for global fertilizer trade. The Philippines reported receiving assurances from China that fertilizer shipments would continue, despite reports of potential export restrictions. China has historically controlled fertilizer exports to manage domestic prices.

A war in Iran has disrupted oil supplies through the Strait of Hormuz, impacting Asian economies reliant on energy imports from the Gulf. China, India, Japan, and South Korea receive the majority of oil that passes through the strait. While China accounts for nearly 40% of this crude, India, Thailand, and South Korea are more vulnerable to supply disruptions. Some Asian governments are curbing energy consumption, and shortages have emerged in India and Thailand. Japan and South Korea possess the largest crude stockpiles, covering 200-250 days of imports, while India and Indonesia have reserves for only 20-25 days.

Following US-Israeli strikes against Iran in late February, Iran has threatened vessels in the Strait of Hormuz, a critical shipping route, leading to a global energy crisis. The Strait's closure has disrupted approximately 20 million barrels of oil shipments daily, causing oil prices to surge. Asian countries reliant on Gulf oil, like the Philippines and Indonesia, are struggling with shortages. China, the world's largest oil buyer, is also feeling the strain, though its diversified energy sources and strategic planning put it in a better position than some neighbors. While China imports significant oil from the Gulf, it also relies on domestic production and pipeline imports from Russia, primarily for its northern regions, which remain unaffected by the Strait's closure.