Governments scramble to limit fallout of Iran war as oil prices surge

Group 1 - Governments in Asia are taking measures to mitigate the economic impact of the Iran war, which has led to a record surge in oil prices, with Brent crude jumping 25% [1][2] - South Korea is capping fuel prices for the first time in nearly 30 years, highlighting the economic burden due to high dependency on Middle Eastern oil [1][2] - Japan is preparing for a possible release of its national oil reserves, which can cover 354 days of consumption, as it imports around 95% of its oil from the Middle East [1][2] Group 2 - Oil production cuts by key producers like Iraq and Kuwait, along with the closure of the Strait of Hormuz, are contributing to fears of prolonged energy supply disruptions [1][2] - Iraq has reduced oil production from its main southern oilfields by 70% to 1.3 million barrels per day, while Kuwait has also begun cutting output [1][2] - Analysts predict that the United Arab Emirates and Saudi Arabia may need to cut output soon due to limited oil storage capacity caused by the Strait of Hormuz closure [1][2]