Recent tensions in the Middle East have again highlighted a structural vulnerability in Emerging Asia: deep reliance on imported fossil fuels. Asia consumes around 38 percent of the world’s oil and 24 percent of global natural gas, yet remains heavily dependent on external supply, much of it routed through a handful of constrained maritime passages such as the Strait of Hormuz and the Strait of Malacca.
Analysis from the Asian Development Bank shows how even limited energy supply disruptions can push up prices, drive inflation and weigh on growth. The Middle East conflict could reduce growth in developing Asia and the Pacific by up to 1.3 percent during 2026–2027 and raise inflation by 3.2 percent, if energy market disruptions last more than a year. With energy embedded across transport, manufacturing and urban services, shocks are transmitted rapidly across the region, particularly where inventories and import diversification are limited.
This is not a temporary s
