Kenneth Glad
Fuel shortages are forcing difficult choices far from the Middle East, from factory shutdowns to grounded flights.
What began as a regional conflict is now disrupting supply chains that many industries rely on every day.
In recent weeks, garment factories in Bangladesh have paused production due to power shortages, while airlines have reduced routes as jet fuel prices climb. In the United States, gasoline prices have risen by more than 30 percent in some areas. Governments are stepping in with emergency measures, reflecting how quickly the disruption is unfolding.
Data compiled by The New York Times shows that tanker traffic through the Strait of Hormuz has dropped to near zero after repeated attacks on ships and infrastructure. The route, once used by around 80 vessels a day, is now largely avoided.
Supply risks grow
Instead of moving steadily out of the Gulf, shipments are being delayed or cancelled. For traders and shipping firms, the issue is no longer just supply, but whether cargo can move at all.
Shipping schedules have broken down, and insurance costs have surged as the region becomes increasingly dangerous for commercial vessels. Many companies are choosing to stay away.
That reluctance is tightening supply further. Even when oil and gas are available, getting them to buyers has become the main obstacle. This helps explain why the current disruption feels different from earlier crises.
There is also limited spare production capacity elsewhere. Markets don’t have much of a buffer, which is contributing to sharp price swings.
Some producers outside the region, including the United States, are benefiting from higher prices. Still, that does little to replace the missing flow from Gulf exporters.
Asia under pressure
The heaviest impact is falling on Asia, which depends heavily on Gulf energy imports. With supplies constrained, governments are scrambling.
China has moved to keep more fuel for domestic use, while parts of Southeast Asia are turning back to coal to fill gaps.
Japan and South Korea, both reliant on imports, are searching for alternatives.
Elsewhere, the effects vary but remain significant. European industries are facing renewed cost pressures, and U.S. drivers are paying more at the pump.
Washington is pushing for a naval effort to secure the route. President Trump has warned of escalation if Iran does not reverse course, though the outcome remains uncertain.
Economists say these steps may buy time rather than fix the problem. If the disruption continues, the impact is likely to deepen across trade, inflation and investment, and could accelerate the shift toward alternative energy sources.
Source: The New York Times
