BUSINESS

Asian Energy Markets Reeling as U.S.-Iran War Disrupts Supply

Published: Mar. 10, 2026 5:12 p.m. GMT+8

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Students at Dhaka University pack their belongings to move out of their dormitories in Dhaka, Bangladesh, on March 9. Photo: VCG

The escalating U.S.-Israel war on Iran is rippling across Asia’s energy markets, forcing governments to scramble for fuel supplies and cut energy consumption.

Bangladesh on Monday ordered the nationwide closure of universities, bringing forward the Eid al-Fitr holidays, as part of emergency measures aimed at easing electricity demand after disruptions to Gulf energy supplies strained the country’s power system.

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The US-Israel war on Iran, starting Feb. 28, 2025, is disrupting energy supplies across Asia, especially through the Strait of Hormuz, which handles 31% of global oil and 19.3% of LNG shipments.
Bangladesh, heavily dependent on LNG imports from Qatar, closed universities and diverted fuel after attacks halted QatarEnergy’s LNG production.
Other Asian countries like Pakistan, Sri Lanka, Vietnam, and Thailand are also imposing emergency measures to manage fuel shortages and price hikes.

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Who’s Who

QatarEnergy: QatarEnergy, the largest LNG producer globally, announced on March 2 and 3 that it had ceased the production of LNG and related products. This decision followed military strikes on its facilities. This cessation of production has contributed to the current energy crisis, particularly impacting countries heavily reliant on LNG imports from Qatar, such as Bangladesh.

Argus Media: Argus Media is an energy information provider. According to the article, the Bangladeshi government is diverting natural gas from fertilizer plants to power stations and purchasing expensive spot LNG shipments, a situation reported by Argus Media.

Bangkok Post: The Bangkok Post reported that Thailand, which receives around 50% of its oil and liquefied natural gas (LNG) from the Middle East, is exploring options to purchase crude oil from West Africa and the United States. This strategic shift comes amid rising energy market tensions.

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What Happened When

Feb. 28, 2026：: The U.S. and Israel launched airstrikes on Iran, prompting retaliatory attacks by Tehran on American military targets across the Middle East.

March 2, 2026：: QatarEnergy announced that it had halted production of LNG and related products following military attacks on its facilities.

March 3, 2026：: QatarEnergy announced that it had halted production of LNG and related products following military attacks on its facilities.

March 9, 2026：: Pakistan announced measures including temporary school closures, reduced fuel subsidies, and a four-day workweek for the public sector.

March 10, 2026：: Bangladesh ordered the nationwide closure of universities, bringing forward the Eid al-Fitr holidays as part of emergency energy-saving measures.

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