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Middle East Conflict Disrupts LNG, Asia Turns to Coal

3/21/2026

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Summary

Story summary

The Middle East conflict disrupts liquefied natural gas (LNG) supplies to Asia, prompting a shift to coal.
Bangladesh, Japan, and South Korea face rising energy costs and supply shortages.
Japan relies on the Strait of Hormuz for 93% of its oil imports.
Governments are lifting coal caps and rationing energy as analysts warn the impact will extend beyond the current conflict.

History

Historical Context

The 1973 Oil Crisis began when the Organization of Arab Petroleum Exporting Countries (OAPEC) imposed an embargo against nations supporting Israel during the Yom Kippur War, leading to a 400% increase in oil prices. Japan, heavily reliant on Middle Eastern oil, faced severe economic repercussions, prompting shifts in energy policy and consumption patterns that resonate today amid ongoing geopolitical tensions affecting energy supplies.

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Story summary

The Middle East conflict disrupts liquefied natural gas (LNG) supplies to Asia, prompting a shift to coal.
Bangladesh, Japan, and South Korea face rising energy costs and supply shortages.
Japan relies on the Strait of Hormuz for 93% of its oil imports.
Governments are lifting coal caps and rationing energy as analysts warn the impact will extend beyond the current conflict.

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