Asian countries most vulnerable to Strait of Hormuz blockade
TOKYO: Around 84 percent of oil passing through the Strait of Hormuz is destined for Asia, leaving the economies of China, India, South Korea and others vulnerable should Iran blockade the crucial trading route over US strikes on its nuclear sites.
Around 14.2 million barrels of crude oil and 5.9 million barrels of other petroleum products pass through the strait per day – representing around 20 percent of global production in the first quarter, according to the US Energy Information Administration (EIA).
And crude oil from Saudi Arabia, the UAE, Iraq, Kuwait, Qatar and Iran almost exclusively passes through the corridor.
Tankers U-turn, zig-zag, pause around Strait of Hormuz
Here are the main Asian countries where oil exported via the strait is destined:
China
More than half of the oil imported by East Asia passes through the Strait of Hormuz, experts estimate.
China is one of the largest buyers, importing 5.4 million barrels of crude oil a day through Hormuz in the first quarter this year, according to the EIA.
Saudi Arabia is China's second-largest supplier of crude oil, accounting for 15 percent of its total oil imports – 1.6 million barrels a day.
China also buys more than 90 percent of Iran's oil exports, according to the analysis firm Kpler.
It imported 1.3 million barrels of Iranian crude oil a day in April, down from a five-month high in March.
India
India is highly dependent on the Strait of Hormuz, importing 2.1 million barrels of crude a day through the corridor in the first quarter, EIA data shows.
Around 53 percent of India's imported oil in early 2025 came from Middle Eastern suppliers, particularly Iraq and Saudi Arabia, local media reported.
Wary of an escalating conflict in the Middle East, New Delhi has increased its imports of Russian oil over the past three years.
'We have been closely monitoring the evolving geopolitical situation in the Middle East since the past two weeks,' India's Minister of Petroleum and Natural Gas Hardeep Singh Puri said on Sunday.
'We have diversified our supplies in the past few years and a large volume of our supplies do not come through the Strait of Hormuz now,' he wrote on X, adding 'We will take all necessary steps to ensure stability of supplies of fuel to our citizens.'
South Korea
Around 68 percent of South Korea's crude oil imports pass through the Strait of Hormuz – 1.7 million barrels a day this year, according to the EIA.
South Korea is particularly dependent on its main supplier Saudi Arabia, which last year accounted for a third of its oil imports.
Seoul's trade and energy ministry said there have been 'no disruptions so far in South Korea's crude oil and LNG imports' but 'given the possibility of a supply crisis', officials were 'planning for potential disruptions in the Strait of Hormuz'.
'The government and industry stakeholders have prepared for emergencies by maintaining a strategic petroleum reserve equivalent to about 200 days of supply,' the ministry said in a statement.
Japan
Japan imports 1.6 million barrels of crude oil a day through the Strait of Hormuz, the EIA says.
Japanese customs data showed 95 percent of crude oil imports last year came from the Middle East.
The country's energy freight companies are readying for a potential blockade of the strait.
'We're currently taking measures to shorten as much as possible the time spent by our vessels in the Gulf,' shipping giant Mitsui OSK told AFP.
Others
Around 2 million barrels of crude oil passing through the Strait of Hormuz each day in the first quarter were destined for other parts of Asia – particularly Thailand and the Philippines – as well as Europe (0.5 million barrels) and the United States (0.4 million barrels).
Limited alternatives
Asian countries could diversify their oil suppliers, but it is difficult to replace the large volumes coming from the Middle East.
In the short term, 'elevated global oil inventories, OPEC+'s available spare capacity, and US shale production all could provide some buffer', experts at MUFG Bank said.
'However, a full closure of the Hormuz Strait would still impact on the accessibility of a major part of this spare production capacity concentrated in the Persian Gulf,' they said.
Saudi Arabia and the UAE have infrastructure to bypass the strait, potentially mitigating disruptions, but their transit capacity remains very limited – around 2.6 million barrels a day.
And the Goreh-Jask pipeline built by Iran to export via the Gulf of Oman, which has been inactive since last year, has a maximum capacity of only 300,000 barrels per day, according to the EIA.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
34 minutes ago
- Business Recorder
Oil falls nearly 4% as Iran's retaliation focuses on regional US military bases
HOUSTON: Oil prices slipped more than $3, or 4%, on Monday after Iran attacked the U.S. military base in Qatar in retaliation for U.S. attacks on its nuclear facilities, and took no action to disrupt oil and gas tanker traffic through the Strait of Hormuz. Brent crude futures were down $2.91, or 3.8%, at $74.09 a barrel by 1:13 p.m. ET (1713GMT). U.S. West Texas Intermediate crude (WTI) eased $2.8, or 3.8%, to $71.06. Explosions were heard over Qatar's capital Doha on Monday, a Reuters witness reported, shortly after a Western diplomat said there had been a credible Iranian threat against the U.S.-run al Udeid air base in the Gulf Arab state since midday. 'Oil flows for now aren't the primary target and is likely not to be impacted, I think it's going to be military retaliation on US bases and/or trying to hit more of the Israeli civilian targets,' said John Kilduff, a partner at Again Capital. Qatar said it closed its airspace, while United Arab Emirates' airspace was closed based on flight paths and air traffic control audio, according to Flightradar. U.S. President Donald Trump said he had 'obliterated' Iran's main nuclear sites in strikes over the weekend, joining an Israeli assault in an escalation of conflict in the Middle East as Tehran vowed to defend itself. Oil prices settle lower Israel also carried out fresh strikes against Iran on Monday including on capital Tehran and the Iranian nuclear facility at Fordow, which was also a target of the U.S. attack. At least two supertankers made U-turns near the Strait of Hormuz following U.S. military strikes on Iran, ship tracking data shows, as more than a week of violence in the region prompted vessels to speed, pause, or alter their journeys. About a fifth of global oil supply flows through the strait. However, the risk of a complete shutdown is low, analysts have said. A telegraphed attack on a well defended U.S. base could be a first step in reducing tensions provided there are no US casualties, Energy Aspects said in a post. 'Unless there are indications of further Iranian retaliation or escalation by Israel/the US then we may see some geopolitical risk premium come out of the price in subsequent days,' it said. Qatar said there were no casualties from the attack on the U.S. military base. Iran, which is OPEC's third-largest crude producer, said on Monday that the U.S. attack on its nuclear sites expanded the range of legitimate targets for its armed forces and called Trump a 'gambler' for joining Israel's military campaign against the Islamic Republic. Meanwhile, Trump expressed a desire to see oil prices kept down amid fears that ongoing fighting in the Middle East could cause them to spike. On his Truth Social platform, he addressed the U.S. Department of Energy, encouraging 'drill, baby, drill' and saying, 'I mean now.' Investors are still weighing up the extent of the geopolitical risk premium, given the Middle East crisis has yet to crimp supply. HSBC expects Brent prices to spike above $80 a barrel to factor in a higher probability of a Strait of Hormuz closure, but to recede again if the threat of disruption does not materialise, the bank said on Monday. Iraq's state-run Basra Oil Company said international oil majors including BP, TotalEnergies and Eni had evacuated some staff members working in oilfields.
Business Recorder
an hour ago
- Business Recorder
Qatar says Iranian attack on US base ‘flagrant violation' of sovereignty
DOHA: Qatar on Monday condemned an Iranian attack on the largest US military base in the region, hosted in the Gulf state, calling it a 'flagrant violation' of its sovereignty. Explosions heard over Qatar capital Doha after Iran threat to retaliate for US strikes 'We express the State of Qatar's strong condemnation of the attack on Al Udeid Air Base by the Iranian Revolutionary Guard Corps, and consider it a flagrant violation of the State of Qatar's sovereignty and airspace, as well as of international law,' foreign ministry spokesman Majed Al-Ansari said in a statement.
Express Tribune
2 hours ago
- Express Tribune
Iran launches six missiles toward US bases in Qatar
Iran's Supreme Leader Ayatollah Ali Khamenei looks on, in a televised message following the Israeli strikes in Tehran, Iran, June 13, 2025. Photo: Reuters/ File Axios, citing an Israeli official, reported on Monday that Iran had launched six missiles toward US bases in Qatar, following an earlier report that Tehran was preparing to do so. Meanwhile, several explosions were heard over the Qatari capital, Doha, a Reuters witness said, following Tehran's threats to retaliate against US strikes on Iranian nuclear sites. The White House and the Department of Defense are closely monitoring potential threats to Al Udeid Air Base in Qatar, a senior White House official said. 'The White House and the Department of Defense are aware of, and are closely monitoring, potential threats to Al Udeid Air Base,' the official stated. BREAKING: Iran's state TV IRIB says Operation Basharat al-Fath against U.S. bases has begun. — Clash Report (@clashreport) June 23, 2025 The United Arab Emirates is closely monitoring ongoing regional developments and continuously assessing the situation, a government spokesperson said on Monday. The statement was issued in response to a Reuters inquiry about whether the UAE planned to close its airspace, following Qatar's decision to do so amid the escalating regional crisis. The United States embassy in Qatar advised American citizens to "shelter in place", following Tehran's threats to retaliate for US strikes on Iranian nuclear sites. Several other Western embassies echoed the warning. Qatar, a gas-rich Gulf nation located about 190 kilometres (120 miles) south of Iran, hosts the US military's largest base in the region — Al Udeid Air Base. 'Out of an abundance of caution, we recommend American citizens shelter in place until further notice,' the US embassy stated on its website. Britain and Canada later cited the US alert in their own advisories to nationals. Iran's armed forces warned on Monday of 'serious, unpredictable consequences' for the United States in response to the airstrikes on three nuclear sites. In neighbouring Bahrain, which hosts the US Navy's Fifth Fleet, the American embassy said it had 'temporarily shifted a portion of its employees to local telework.' Bahraini authorities had earlier directed most government workers to work from home, citing 'regional circumstances.' Responding to the embassy warnings, Qatari foreign ministry spokesman Majed al-Ansari said that such advisories "do not necessarily reflect the existence of specific or credible threats." 'We would like to reassure the public that the security situation in the state remains stable,' he wrote on X. 'Qatar continues to exert intensive diplomatic efforts to de-escalate tensions in the region.' Separately, on Sunday, the US State Department advised Americans worldwide to 'exercise increased caution' due to the ongoing conflict between Israel and Iran. Following Israel's initial strikes on Iran on June 13, the US embassy in Qatar had already urged staff and American citizens to 'exercise increased caution' and limit non-essential travel to Al Udeid Air Base. This story is being updated.
