Impact of the Iran War: Asia Becomes the Main Victim of the Global Energy Crisis

JAKARTA — The global energy crisis triggered by the conflict in the Middle East is beginning to show its most tangible impacts in the Asian region. Disruptions in the supply of oil and its derivatives are not only pressuring the industrial sector but also spreading to household consumption and economic stability in developing countries. The Oil Market Report edition of 14 April 2026 from the International Energy Agency (IEA) notes that global energy distribution disruptions have severely hit countries in Asia that are highly dependent on energy imports, particularly from the Gulf region. The agency adds that supplies of oil, liquefied petroleum gas (LPG), and petrochemical raw materials have experienced significant disruptions. One of the sectors most affected is the petrochemical industry, which serves as the backbone of manufacturing in many Asian countries. High dependence on raw materials such as naphtha, LPG, and ethane makes this industry highly vulnerable to supply disruptions. The most pronounced impacts are occurring in Asia, where many factories have had to reduce production capacity. “Production cuts are reported to reach between 10 percent and 30 percent of capacity at various petrochemical facilities in Asia,” the IEA writes in its report. This decline is driven by spikes in raw material costs and supply limitations due to hindered distribution from the Middle East. This situation directly affects downstream sectors such as manufacturing, textiles, construction, and the packaging industry. The IEA warns that the depletion of polymer stocks in several markets could trigger broader production disruptions. “Polymer supplies in some markets are starting to thin out, threatening the manufacturing, textiles, construction, and packaging sectors,” the IEA explains.