The Strait of Hormuz is facing a blockade. These countries will be most impacted

Core Insights - The closure of the Strait of Hormuz by Iran is significantly impacting global energy markets, particularly affecting Asia, with potential oil prices exceeding $100 per barrel due to supply disruptions [2][3] Energy Market Impact - The Strait of Hormuz is crucial for global oil trade, with approximately 13 million barrels per day passing through it, accounting for about 31% of all seaborne crude flows [2] - A prolonged closure could lead to a surge in oil prices, with Brent crude already rising nearly 10% since the onset of the conflict [2] Natural Gas Exports - About 20% of global liquefied natural gas (LNG) exports from the Gulf are at risk, particularly those from Qatar, which has halted production following drone attacks on its facilities [3] Regional Vulnerabilities - South Asia is particularly vulnerable, with countries like Pakistan, Bangladesh, and India heavily reliant on LNG imports from Qatar and the UAE [5][8] - Pakistan and Bangladesh face immediate physical strain due to limited storage and procurement flexibility, with Bangladesh already experiencing a significant gas deficit [6][7] Specific Country Analysis - India has the largest exposure in the region, with over half of its LNG imports linked to the Gulf, leading to increased costs for both oil and LNG due to the closure [8] - China, while significantly exposed, has sufficient buffers through stockpiles and alternative supplies, but would need to compete for Atlantic cargoes if the situation persists [9][10] Strategic Responses - Saudi Arabia has increased crude loadings, and strategic petroleum reserves held by major consuming nations like China may provide temporary market cushioning [11]