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

[AP Photo]

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-blocked Strait 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.

“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.