The Strait of Hormuz blockade hit Asia’s economies particularly hard. Image: X Screengrab

The initial market reaction to US and Israeli military strikes on Iran was familiar: Brent crude surged in early Asian trading, equity markets slipped and headlines focused on the energy shock to come.

But months later, the conflict appeared to become much more than an energy disruption — it served as a stress test for Asia’s trade architecture, exposing vulnerabilities that run far deeper than elevated oil prices alone.

For corporates, logistics providers and policymakers across the Association of Southeast Asian Nations (ASEAN), the seemingly more consequential story unfolded in shipping lanes, compliance departments, export control registers and trade finance desks.

How the region responds could influence not just its near-term economic outlook, but the structure of Asian trade for years to come.

When Hormuz closes, Asia is among the first affected

The closure of the Strait of Hormuz — through which roughly a third of global seaborne crude oil and around 20% of global liquefied natural gas shipments pass — had near-term consequences for Asia’s most commodity-dependent economies.

Japan, South Korea, Taiwan, Singapore and Hong Kong all import more than 80% of their domestic energy needs. Nearly 90% of liquefied natural gas (LNG) exported through the Strait flows to Asian buyers. Asia generates two-thirds of global GDP growth and accounts for 40% of world trade while remaining heavily dependent on imported energy.

The disruption extended well beyond energy. A third of global seaborne fertilizer trade passes through the Strait of Hormuz, meaning that as gas prices rise, fertilizer costs follow and food prices with them. Some Asian exports have also faced delays or rerouting. India’s agricultural exports to Gulf markets have reportedly slowed as freight and insurance costs spike.

In addition, Qatar is the world’s second-largest producer of helium — a critical input for semiconductor manufacturing — and reports of disruptions at LNG facilities have raised the risk of interruptions in helium production