Oil markets have been shaken by supply disruptions in the Middle East. Iraq alone reduced production at its southern fields by about 70%, cutting production to about 1.3 million barrels per day.
Source: Source: asianews.network
Asian governments are imposing emergency measures after oil prices jumped 25% amid the Iran war. South Korea is limiting fuel prices and Japan is considering issuing reserves.
Authorities across Asia are trying to limit the economic impact of the rapid rise in oil prices caused by the growing conflict involving Iran, as global crude oil prices have shown one of the sharpest daily jumps in years.
According to a Reuters report, Brent crude prices jumped about 25% on Monday amid concerns of supply disruptions, cuts in production by key producers and the ongoing closure of the Strait of Hormuz.
The jump comes after Iran appointed Mojtab Khomeini as the new supreme leader to replace his father Ali Khomeini, signaling the continued hard-line leadership.
In response to the surge in prices, governments across Asia have promptly introduced emergency measures aimed at protecting consumers and stabilizing energy supply.
In South Korea, President Lee Jae Myung announced that the government would limit fuel prices for the first time in nearly 30 years, warning citizens not to buy goods in panic.
Lee said at an emergency meeting that the crisis was «The heavy burden on our economy»It is highly dependent on international trade and imports about 70% of its oil from the Middle East.
In Japan, senior lawmakers said the government had instructed operators of national oil reserves to prepare for a possible release of crude oil reserves, although later Cabinet officials said the decision had not yet been made. Japan imports about 95% of its oil from the Middle East and currently has reserves sufficient for about 354 days.
Other governments have also introduced measures to mitigate the effects of rising energy prices. Vietnam has lifted import duties on fuel to lower domestic prices, while Bangladesh has ordered the temporary closure of universities to save electricity and fuel.
China has also taken steps to tighten domestic fuel supplies, asking refiners to stop fuel exports and try to cancel already ordered supplies.
In the United States, President Donald Trump has tried to downplay concerns about rising gasoline prices, which have already risen by about 11% over the past week.
At the same time, Chuck Schumer, a minority leader in the Senate, called on the administration to release oil from the country's Strategic Petroleum Reserve to ease pressure on fuel markets.
Oil markets have also been shaken by supply disruptions in the Middle East. Iraq has cut production at its major southern fields by about 70%, cutting production to about 1.3 million barrels per day, according to industry sources.
Kuwait Petroleum Corporation also cut production and declared force majeure, while Qatar, the world's second-largest exporter of liquefied natural gas, suspended LNG supplies.
Analysts have warned that other major producers, such as Saudi Arabia and the United Arab Emirates, could soon be forced to cut production as vaults fill due to the closure of the Strait of Hormuz.
