The ongoing war in West Asia, involving the Israel-US alliance on one side and Iran on the other, is now having an impact on the global economy and energy markets. Many countries have started taking different steps to deal with possible oil price surge, supply crisis and economic instability.
Price cap in South Korea
The government of South Korea has decided to impose temporary control on fuel prices to stop the sharp increase in the prices of petrol and diesel in the domestic market. Its aim is to keep transportation costs and inflation under control, as rising tensions in West Asia have increased the risk of sudden spikes in international oil prices.
work in odd-even system
Myanmar in South-East Asia has prepared to implement rationing under the odd-even system to reduce fuel consumption. Under this, vehicles can be allowed to take fuel or run on the road on a limited number of days based on the number plate, so that the available fuel reserves can last for a longer period. Japan has also increased vigilance regarding energy security. The Japanese government is reviewing the status of its strategic crude reserves and is preparing to use these reserves to maintain supply in the market if needed.
Trade Crisis Group in India
The government has activated a special Trade Crisis Group to deal with the potential economic impact arising from the situation in India. The group is assessing the impact of the war on oil supplies, the security of maritime trade routes, shipping costs and energy prices. This is particularly important for India as West Asian countries are India’s major energy supplies and trade partners worth about $200 billion.
China and Thailand also tightened their belts
Meanwhile, China and Thailand have taken steps to temporarily stop or limit energy exports, giving priority to their domestic energy security. The purpose of these measures is to ensure that there is no energy shortage in the domestic market in the event of a possible disruption in global supply. Overall, this conflict in West Asia is no longer just a regional military crisis, but due to this, it is likely to have a wider impact on global energy markets, inflation and trade supply chains. Therefore, many countries in Asia and other regions are trying to reduce the possible economic shock by taking precautionary measures.