ASIA’S WAKE-UP CALL
The Hormuz crisis has been particularly significant for Asia given its heavy dependence on energy imports from the Gulf, much of which transits through the strait.
The disruption triggered immediate responses. Governments monitored or drew on strategic reserves, while refiners sought alternative supplies. In some cases, demand-side measures were introduced to conserve fuel. India, for example, managed to stabilise imports by pivoting to Russian crude and other sources, illustrating both flexibility and its trade-offs.
However, diversification is neither seamless nor costless. Alternative supplies often come with longer shipping times, higher freight costs and additional geopolitical considerations.
The crisis also renewed interest in alternative routes for energy exports from the Middle East to Asia. In practice, however, these options offer only partial relief.
Saudi Arabia’s East-West pipeline and the UAE’s Fujairah corridor allow oil to bypass the Strait of Hormuz and reach the Red Sea or the Gulf of Oman. But their combined capacity falls short of the roughly 20 million barrels per day that typically transit Hormuz. In addition, oil shipped from the Red Sea or Fujairah ports must still travel long distances to Asia, often through other congested sea lanes. In effect, the chokepoint is not removed, just shifted.
More fundamentally, these alternative routes remain tied to Middle East’s energy production system, with similar geopolitical risks such as potential disruptions to infrastructure and regional escalation. Therefore, they do not significantly diversify Asia’s supply base.
Efforts to develop more ambitious overland routes, such as the long-delayed Basra-Aqaba pipeline project by Iraq and Jordan, face additional constraints. Pipelines through Iraq or Jordan, or broader regional networks, are limited by political instability, security risks and competing geopolitical interests. They may also create new chokepoints, giving transit countries greater influence over energy flows.
The conclusion is straightforward: Alternatives can help mitigate disruptions, but they cannot replace the Strait of Hormuz as the primary route for Middle East-to-Asia energy trade as they tend to be less efficient, more costly and more complex to operate.