Iran has closed the Strait of Hormuz, sending shockwaves across global energy markets. Many countries will be affected, but the most pain will be felt in Asian countries. The strait is vital for oil trade, with roughly 13 million barrels per day passing through it in 2025. Oil prices have already significantly increased, and this development could make matters worse. Some specific countries that will be affected are China, Japan, South Korea, and other countries in Southeast Asia. It's the expectation that they'll see inflation first, and shortages second. However, China has a good amount of reserves to weather the storm for a while, but the uncertainty around this circumstance could cause economic hardship for any country caught in the crossfire of this war.
https://www.cnbc.com/2026/03/03/strait-of-hormuz-closure-which-countries-will-be-hit-the-most.html
With the increase of electric vehicle (EV) sales, especially in Southeast Asia, do you think that these spikes in oil prices will affect the EV market in these countries listed both in the short and long run? Do you think that consumers will change their preferences to EV versus gas vehicles if the cost of gas continues to rise? I wonder what effect this war will have on gas prices inside the United States.
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