Asia’s energy infrastructure should be stress-tested like banks

Safeguards must extend beyond the national level to also consider regional systems

Summarise
    • The Strait of Hormuz closure in March 2026 disrupted almost 20% of global liquefied natural gas trade, with Asia particularly exposed.
    • The Strait of Hormuz closure in March 2026 disrupted almost 20% of global liquefied natural gas trade, with Asia particularly exposed. PHOTO: REUTERS
    Published Mon, Sep 14, 2026 · 07:00 AM

    WITHIN months, the Strait of Hormuz showed – twice – how an energy choke point can transmit a shock through the global economy.

    Its closure in March 2026 disrupted almost 20 per cent of global liquefied natural gas (LNG) trade. Traffic partially recovered in June, before renewed fighting restricted the waterway again.

    Asia is particularly exposed. LNG passing through Hormuz accounted for 27 per cent of the region’s imports in 2025, compared with 7 per cent for Europe. Disruption can quickly affect electricity, transport, manufacturing, food prices and household budgets.