https://www.the-independent.com/news/east-asia-china-iran-persian-gulf-taiwan-b2932303.html
The article explains how the war involving Iran is disrupting global energy supplies, especially oil and liquefied natural gas that normally pass through the Strait of Hormuz. This narrow waterway carries about one fifth of the world’s oil and LNG shipments, and fighting in the region has slowed or blocked shipments, causing energy prices to rise. The price of Brent crude oil has already increased about 15 percent to around 84 dollars per barrel. Asian countries are the most affected because many rely heavily on imported energy from the Middle East. Countries such as China, India, Japan, and South Korea depend heavily on these shipments. Governments are now preparing emergency reserves and considering alternative energy sources while hoping the conflict ends soon.
I like analyzing this article because the previous article I wrote about was how the Iran war was affecting the relationships and stability between countries and now I get to analyze how it is affecting the economic stability. It is clear that this war is not just a military and security issue but also an energy security problem for countries that rely on oil and gas imports. It is known that these Asian economies are depending heavily on energy that is derived from the middle east, so any type of disruption will raise fuel prices, which then increase inflation, then ultimately slow any economic growth. This can also be compared to the energy shock during the Russia and Ukraine war. f the conflict continues, countries may accelerate investments in renewable energy to reduce dependence on unstable regions for fossil fuels.
Like always, there are numerous ways stakeholders could respond to this situation. Asian countries might have to take the action to release oil from strategic reserves and search for alternative suppliers such as Russia or other producers. Because of the reduced amount of energy, the governors within Asia may communicate the idea of utilizing energy wisely and encourage energy conservation and increase renewable energy investments. Companies will also have to reduce the amount of energy they use resulting in the adjustment of supply chains and increase production in other regions to compensate for shortages. International organizations might also get involved including the UN to push for diplomatic negotiations to end the conflict and reduce risks to global trade. Cooperation also might increase as countries need to work together to manage energy shortages.
As for class connection there are multiple concepts we have learned that were mentioned in the article. Specifically a main focus on international security and economic interdependence. It is evident and I have learned in class that energy resources, specifically oil, is a crucial part of national security as it provides power transportation, industry, and economic growth. The disruption through the strait of Hormuz that was mentioned in the article shows how global trade routes are strategically important. This article also highlights the idea of international cooperation through organizations and alliances in order to protect global trade and prevent situations from escalating .